We build on economic theory to discuss how blockchain technology can shape innovation and competition in digital …

) and another intrinsically worthless medium of exchange, not controlled by a central bank, such as Bitcoin. Agents can … inflation target, while Bitcoin mining is decentralized via proof-of-work. We analyze Bitcoin price evolution and interaction … between the Bitcoin price and monetary policy which targets the Dollar. We obtain a fundamental pricing equation, which in its …

Since its launch in 2009 much has been written about Bitcoin, cryptocurrencies and blockchains. While the discussions …

This paper analyzes the possibility and the consequences of rational bubbles in a dy- namic economy where financially … (scarce). We analyze extensions with firm heterogeneity and sto- chastic bubbles …

and Porter (1981) and Shiller (1981a). It appears that neither small sample bias, rational bubbles nor some standard …

, including influential studies identifying price bubbles in periods of high volatility. Here we consider a model of the market … empirical tests of price behavior. In this model commodity price is equal to marginal consumption value, and hence bubbles as … "explosive" and might seem to be bubble-like. At sufficiently long holding periods, a price path can yield average returns …

individuals, to explain bubbles, crises, and endogenous risk in financial markets …

I examine the impact of alternative monetary policy rules on a rational asset price bubble, through the lens of an … overlapping generations model with nominal rigidities. A systematic increase in interest rates in response to a growing bubble is … shown to enhance the fluctuations in the latter, through its positive effect on bubble growth. The optimal monetary policy …

. The theory predicts that asset prices carry a speculative premium that reflects the asset's marketability and depends on … anomalous. The theory also exhibits rational expectations equilibria with recurring belief driven events that resemble liquidity …