Publicaton Cryptocurrencies, Currency Competition and the Impossible Trinity | Blockchain@X

Publication date:


Cryptocurrencies, Currency Competition and the impossible Trinity​

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. We call the result Crypto-Enforced Monetary Policy Synchronization (CEMPS).


Pierpaolo Benigno


Sign up to receive the newsletter of the research center and be kept informed of our news and events.