Firm Level Heterogeneity and the Impact of Monetary Policy on Labour Demand

Gert Bijnens, John Hutchinson and Arthur Saint-Guilhem

Working papers from Banque de France

Abstract: This paper examines the effects of cryptocurrency regulation on price deviations in the Bitcoin market, focusing on regulatory implementations rather than announcements. I construct a unique database of regulations across 28 countries since 2009, categorized into seven types, and analyse Bitcoin price data since September 2013. Our findings indicate that the Law of One Price does not hold in the Bitcoin market. Contrary to initial conjectures, more regulated markets exhibit higher price convergence with the USD benchmark. According to the type of regulation, this result is mixed. Regulations enhancing reliability and transparency, such as the expansion of securities laws, banking and payment regulations, and the implementation of regulatory sandboxes foster price convergence. In contrast, partial bans—primarily targeting banks—exacerbate price divergence, underscoring the significant role of financial institutions in the Bitcoin market. Additionally, anti-money laundering/countering the financing of terrorism (AML/CFT) laws reduce local prices regardless of USD price level, suggesting the cryptoasset's use in illicit activities..

Keywords: Labour Hoarding; Monetary Policy Transmission; Firm-Level Heterogeneity; Employment Adjustment; Financial Constraints (search for similar items in EconPapers)
JEL-codes: E32 E52 J23 (search for similar items in EconPapers)
Pages: 58 pages
Date: 2026
New Economics Papers: this item is included in nep-lma, nep-mon and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:1053

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