Digital Currencies and Macroeconomic Performance: A Global Perspective

Tirimisiyu Oloko, Ahamuefula Ogbonna and Idris Adediran

Bulletin of Monetary Economics and Banking, 2024, vol. 27, issue 2, 351-394

Abstract: In this study, we explore the IS-LM-BP framework in analysing the effect of digital currencies on macroeconomic performance from a global perspective. We augment the global macroeconomic dataset by Mohaddes and Raissi (2020) with digital currencies and analyse the relationship between 2010Q1 and 2019Q4. Overall, we find that digital currencies exert a significantly positive short-run effect but no long-run impact on global output, inflation rate, interest rate, equity stock return, and exchange rate. Our results suggest that digital currencies have enhanced global macroeconomic performance, on average. Thus, we recommend that appropriate regulations, rather than an outright ban on digital currencies, should be implemented.

Keywords: Digital currencies; Macroeconomic indicators; IS-LM-BP framework; Panel VAR model (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://bulletin.bmeb-bi.org/cgi/viewcontent.cgi?article=1954&context=bmeb (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:27:y:2024:i:2g:p:351-394

DOI: 10.59091/2460-9196.1954

Access Statistics for this article

Bulletin of Monetary Economics and Banking is currently edited by Paresh Narayan

More articles in Bulletin of Monetary Economics and Banking from Bank Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Lutzardo Tobing ( this e-mail address is bad, please contact ) and Jimmy Kathon ().