Crypto Currency and the Political Economy of Monetary Policy in a Democracy

Sugata Marjit () and Kausik Gupta ()
Additional contact information
Sugata Marjit: School for Training and Analytical Research in Economics, Business and Society (STAREBS)
Kausik Gupta: University of Calcutta, Department of Economics

Journal of Quantitative Economics, 2025, vol. 23, issue 4, No 2, 1033-1042

Abstract: Abstract The paper attempts to examine the macroeconomic implications of the coexistence of crypto currency with legal tender money in the context of a democratic country such as India. The paper shows that macroeconomic implications of crypto currency can be captured by a simple extension of a basic macro model. The main potential political consequence emerges due to difficulty in implementation of monetary policy, especially prior to elections. The paper shows that if the share of crypto currency out of total money supply is high it is bound to impact on the efficacy of monetary policy, otherwise not. The paper also examines the practical difficulties of legalizing crypto currency.

Keywords: Block chain; Crypto currency; Legal tender money; Monetary policy (search for similar items in EconPapers)
JEL-codes: E52 E58 E61 E63 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s40953-025-00457-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:jqecon:v:23:y:2025:i:4:d:10.1007_s40953-025-00457-7

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40953

DOI: 10.1007/s40953-025-00457-7

Access Statistics for this article

Journal of Quantitative Economics is currently edited by Dilip Nachane and P.G. Babu

More articles in Journal of Quantitative Economics from Springer, The Indian Econometric Society (TIES) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().