The behavioural agent-based framework of De Grauwe and Gerba (2015) is extended to allow for a counterfactual exercise on the role of banks for monetary transmissions. A bank-based corporate financing friction is introduced and the relative contribution of that friction to the effectiveness of...

The emergence of cryptocurrencies represents a significant innovation in the financial domain, where subsequently, the market has experienced exponential growth. The proliferation of digital assets has captured the attention of investors, financial institutions, and regulatory bodies,...