A Monetary Model of Blockchain

Arbeitspapier

The recent emergence of blockchain-based cryptocurrencies has received a considerable attention. The growing acceptance of cryptocurrencies has led many to speculate that the blockchain technology can surpass a traditional centralized monetary system. However, no monetary model has yet been de- veloped to study the economics of the blockchain. This paper builds a model of the economy with a single generally acepted blockchain-based currency. In the spirit of the search and matching literature I use a matching function to model the operation of the blockchain. The formulation of the money demand is taken from a workhorse of monetary economics - Lagos and Wright (2005). I show that in a blockchain-based monetary system money demand features a precautionary motive which is absent in the standard Lagos-Wright model. Due to this precautionary money demand the monetary equilibrium can be stable for some calibrations. I also used the developed model to study how the equilibrium return on money is

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IRTG 1792 Discussion Paper ; No. 2018-008

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Money and Interest Rates: General ; Demand for Money ; Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
• Thema: Blockchain ; Miners ; Cryptocurrency ; Matching function

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Almosova, Anna
• Ereignis: Veröffentlichung
• (wer): Humboldt-Universität zu Berlin, International Research Training Group 1792 "High Dimensional Nonstationary Time Series"
• (wo): Berlin
• (wann): 2018

Weitere Informationen

• Handle: http://hdl.handle.net/10419/230719
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ