Monetary Policy in a World of Cryptocurrencies

【Author】 Benigno, Pierpaolo

【Source】JOURNAL OF THE EUROPEAN ECONOMIC ASSOCIATION

【影响因子】4.301

【Abstract】Can currency competition affect central banks' control of interest rates and prices? Yes, it can. In a two-currency world with competing cash (material or digital), the growth rate of the cryptocurrency sets an upper bound on the nominal interest rate and the attainable inflation rate, if the government currency is to retain its role as medium of exchange. In any case, the government has full control of the inflation rate. With an interest-bearing digital currency, equilibria in which government currency loses medium-of-exchange property are ruled out. This benefit comes at the cost of relinquishing control over the inflation rate.

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【发表时间】

【收录时间】2023-01-05

【文献类型】观点阐述

【主题类别】

区块链治理-市场治理-市场分析