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dc.contributor.authorAsimakopoulos, Stylianos
dc.contributor.authorLorusso, Marco
dc.contributor.authorRavazzolo, Francesco
dc.date.accessioned2023-09-25T10:31:55Z
dc.date.available2023-09-25T10:31:55Z
dc.date.issued2023-09-21
dc.identifier.issn1892-2198
dc.identifier.urihttps://hdl.handle.net/11250/3091713
dc.description.abstractWe develop and estimate a DSGE model to evaluate the economic repercussions of cryptocurrency. In our model, cryptocurrency offers an alternative currency option to government currency, with endogenous supply and demand. We uncover a substitution effect between the real balances of government currency and cryptocurrency in response to technology, preferences and monetary policy shocks. We find that an increase in cryptocurrency productivity induces a rise in the relative price of government currency with respect to cryptocurrency. Since cryptocurrency and government currency are highly substitutable, the demand for the former increases whereas it drops for the latter. Our historical decomposition analysis shows that fluctuations in the cryptocurrency price are mainly driven by shocks in cryptocurrency demand, whereas changes in the real balances for government currency are mainly attributed to government currency and cryptocurrency demand shocks.en_US
dc.language.isoengen_US
dc.publisherBI Norwegian Business Schoolen_US
dc.relation.ispartofseriesCAMP Working Paper Series;09/2023
dc.subjectDSGE Modelen_US
dc.subjectGovernment Currencyen_US
dc.subjectCryptocurrencyen_US
dc.subjectBayesian Estimationen_US
dc.titleA Bayesian DSGE Approach to Modelling Cryptocurrencyen_US
dc.typeWorking paperen_US
dc.source.pagenumber98en_US


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