Can competition among privately issued fiat currencies such as Bitcoin or Ethereum work? Only sometimes. To show this …

How do Bitcoin prices evolve? What are the consequences for monetary policy? We answer these questions in a novel, yet … keeps the real value of Dollars constant, while Bitcoin production is decentralized via proof-of-work. We obtain a …" condition. Under some conditions, we show that Bitcoin prices form convergent supermartingales or submartingales and derive …

We rely on economic theory to discuss how blockchain technology will shape innovation in digital platforms. We identify …

We model the relationship between asset float (tradeable shares) and speculative bubbles. Investors trade a stock with …-sales constraints. A bubble arises as price overweighs optimists' beliefs and investors anticipate the option to resell to those with … even higher valuations. The bubble's size depends on float as investors anticipate an increase in float with lock …

will be optimal varies from one type of bubble to another and, for certain bubbles, from one period to the next. It is … optimally to an asset-price bubble whose stochastic properties they understand. We focus on the impact which the zero lower … the ZLB due to the future bursting of a bubble. Even with perfect knowledge of the bubble process, however, which of these …

We analyse deflationary bubbles in a model where money is the only financial asset. We show that such bubbles are … sharp contrast to those in several prominent contributions to the literature, where deflationary bubbles are ruled out by … deflationary bubbles. Moreover, it rules out Friedman's optimal quantity of money equilibrium and, when the nominal money stock is …

Stock-market crashes tend to follow run-ups in prices. These episodes look like bubbles that gradually inflate and then … suddenly burst. We show that such bubbles can form in a Zeira-Rob type of model in which demand size is uncertain. Two …

. The latter is more likely if bubbles develop along the expansionary path. These (rational) bubbles can emerge even when …

We propose a model of money, credit and bubbles, and use it to study the role of monetary policy in managing asset … bubbles. In this model, bubbles pop up and burst, generating fluctuations in credit, investment and output. Two key insights … emerge from the analysis. First, the growth rate of bubbles, which is driven by agents' expectations, can be set in real or …