We analyze a two-country economy with complete markets, featuring two national currencies as well as a global (crypto)currency. If the global currency is used in both countries, the national nominal ...interest rates must be equal and the exchange rate between the national currencies is a risk-adjusted martingale. Deviation from interest rate equality implies the risk of approaching the zero lower bound or the abandonment of the national currency. We call this result Crypto-Enforced Monetary Policy Synchronization (CEMPS). If the global currency is backed by interest-bearing assets, additional and tight restrictions on monetary policy arise. Thus, the classic Impossible Trinity becomes even less reconcilable.
We consider a setting where agents can choose between two currencies to conduct their goods purchases. The usage of either currency comes with currency-specific transactions costs. For example, ...purchasing some goods with cryptocurrencies rather than dollars is easier and may avoid taxes. We explore an extension of Schilling-Uhlig (2019), allowing for asymmetry in transaction costs as well as dollar-bitcoin exchange fees. Agents alternate in their role as buyers and sellers, necessitating currency. A central bank steers the dollar inflation path, while bitcoins are in fixed supply. We characterize the nonstochastic equilibrium and the resulting exchange rate dynamics.
Some simple bitcoin economics Schilling, Linda; Uhlig, Harald
Journal of monetary economics,
October 2019, 2019-10-00, Letnik:
106
Journal Article
Recenzirano
Odprti dostop
•We provide a model of an endowment economy with two competing, but intrinsically worthless currencies (Dollar, Bitcoin) serving as medium of exchange.•We show a fundamental pricing equation, which ...in its simplest form implies that Bitcoin prices form a martingale.•“Mutual impatience” rules out Bitcoin speculation. Price volatility does not invalidate the medium-of-exchange function.•The Bitcoin block rewards are not a tax on Bitcoin holders: they are financed with a Dollar tax.•We discuss monetary policy implications, Bitcoin production via the proof-of-work competition, taxation of Bitcoin production, welfare implications and entry of new cryptocurrencies. We characterize the range of equilibria and provides specific examples.
We provide a model of an endowment economy with two competing, but intrinsically worthless currencies (Dollar, Bitcoin). Dollars are supplied by a central bank to achieve its inflation target, while the Bitcoin supply grows deterministically. Our fundamental pricing equation implies in its simplest form that Bitcoin prices form a martingale. “Mutual impatience” implies absence of speculation. Price volatility therefore does not invalidate the medium-of-exchange function. Bitcoin block rewards are not a tax on Bitcoin holders: they are financed with a Dollar tax. We discuss monetary policy implications, Bitcoin production, taxation, welfare and entry, and characterize the range of equilibria.
This paper shows the existence of a central bank trilemma. When a central bank is involved in financial intermediation, either directly through a central bank digital currency (CBDC) or indirectly ...through other policy instruments, it can only achieve two of three objectives: a socially efficient allocation, financial stability (i.e., absence of runs), and price stability. In particular, a commitment to price stability can cause a run on the central bank. Implementation of the socially optimal allocation requires a commitment to inflation. We illustrate this idea through a nominal version of the Diamond and Dybvig (1983) model. Our perspective may be particularly appropriate when CBDCs are introduced on a wide scale.
•We consider a nominal version of the Diamond and Dybvig (1983) model•We show the existence of a central bank trilemma.•A central bank can only achieve at most two of three objectives:•attain a socially efficient allocation, financial stability, and price stability.•A commitment to price stability can cause a run on the central bank.•Implementation of the socially optimal allocation requires a commitment to inflation.•Our perspective may be appropriate when CBDCs are introduced on a wide scale.
The introduction of a central bank digital currency (CBDC) allows the central bank to engage in large-scale intermediation by competing with private financial intermediaries for deposits. Yet, since ...a central bank is not an investment expert, it cannot invest in long-term projects itself, but relies on investment banks to do so. We derive an equivalence result that shows that absent a banking panic, the set of allocations achieved with private financial intermediation will also be achieved with a CBDC. During a panic, however, we show that the rigidity of the central bank's contract with the investment banks has the capacity to deter runs. Thus, the central bank is more stable than the commercial banking sector. Consumers internalize this feature ex-ante, and the central bank arises as a deposit monopolist, attracting all deposits away from the commercial banking sector. This monopoly might endanger maturity transformation.
La presente tesis se desarrolla como una investigación y posterior aproximación metodológica para abordar territorios sometidos abruptamente a cambios que generan un trauma, espacios en crisis que ...devienen cuando el individuo a causa de un evento específico cambia su manera de habitarlo para poder sortear diversos obstáculos producidos por forzosas nuevas programáticas y límites territoriales. En la etapa de investigación se desarrolla un set de preguntas para la construcción de antecedentes teóricos que otorgan una palabra sobre la idea de paisaje/landscape y su relación con el habitante a propósito de un evento generado por un desastre natural; luego en la etapa de análisis esta relación es interrogada cualitativamente a través de las evidencias narrativas que genera, en particular aquella del relato biográfico, bajo la premisa de que si el lugar es un espacio vivenciado, las narrativas de sus habitantes son el sustrato de análisis que engloba las diferentes contingencias del espacio en crisis, estas narrativas en sus diferentes manifestaciones sobreviven al acontecimiento mismo del desastre natural entregando evidencias de la relación del hombre con este nuevo espacio. Situando el análisis en un campo de estudio real, donde el trauma del terremoto del pasado 27/02 persiste aún hoy, se visita la comuna de San Pedro de la Paz en la provincia de Concepción durante el mes de septiembre del año 2010 para la recolección de entrevistas, formato que permite obtener de primera fuente información de un hecho situado, información singularizada y acotada a un territorio, la información obtenida de las entrevistas es testimonio que de la conjunción entre evento e individuo aparece el espacio, éstas son posteriormente sometidas a una serie de procedimientos metodológicos de codificación y representación gráfica, para presentar los hallazgos en la discusión final./
Ein sorgender Markt Schwiter, Karin; Berndt, Christian; Schilling, Linda
Geographische Zeitschrift,
12/2014, Letnik:
102, Številka:
4
Journal Article
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Neoliberalisierungsprozesse beinhalten nicht nur die Reduktion staatlicher Regulierungen und Leistungen und deren Neugestaltung nach Wettbewerbsprinzipien. Sie haben auch die Logiken von Märkten ...selbst verändert. So wird die Grenzziehung zwischen Wettbewerb und Moral − zwischen ökonomischem Wert und gesellschaftlichen Werten − zunehmend brüchig. Während öffentliche Dienstleistungen nach marktbasierten Anreizstrukturen umstrukturiert werden, wird von Unternehmen neuerdings nicht nur verlangt, Dienstleistungen zu günstigen Preisen anzubieten, sondern darüber hinaus auch einen gesellschaftlichen Mehrwert zu erbringen. Wir diskutieren diese Verschiebungen am Beispiel der Entstehung eines kommerziellen Marktes für die 24h-Betreuung von älteren Menschen in Schweizer Privathaushalten. Unsere Analyse zeigt auf, wie es gewinnorientierten Betreuungsagenturen gelingt, sich mit Hilfe von diskursiven Im/mobilisierungen, Ethnisierungen und Vergeschlechtlichungen als Akteure eines „sorgenden Marktes“ zu positionieren und für sich in Anspruch zu nehmen, Betreuung nicht nur kostengünstiger, sondern auch menschlicher anzubieten als der Staat.
Processes of neoliberalization cannot be reduced to deregulation and cut-back of public services and their restructuring based on market principles. They include a new logic of how markets themselves operate. The former distinction between competition and morals − between economic values and cultural values increasingly dissolves. While public services are transformed according to market based incentives, companies are increasingly expected to offer not only good services for low prices but also to contribute to a better society. We discuss these changes in the constitution of markets in the example of the emerging market for commercial 24-h home care services for the elderly in Switzerland. Our analysis shows how profit-oriented care agencies draw on discursive im/mobilizing, ethicizing, gendering in order to position themselves as part of a market that cares and to claim that they offer care which is not only cheaper but also more caring than services offered by the state.
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