Decrypting New Age International Capital Flows

Clemens Graf von Luckner, Carmen Reinhart and Kenneth Rogoff

No 17859, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper employs high frequency transactions data on the world’s two oldest and most extensive centralized peer-to-peer Bitcoin markets, which enables trade in the currencies of more than 160 countries. We develop an algorithm that allows us, with high probability, to detect “crypto vehicle transactions†in which crypto currency is used to move capital across borders, and/or to exchange one fiat currency for another. The data suggests that the use of Bitcoin has become an important channel to receive remittances and evade capital controls in emerging markets. This insight allows to develop a novel series for market-determined parallel exchange rates, a key indicator of macroeconomic imbalances; the series covers many countries and time periods where there is limited or no survey evidence, including the explosion of parallel rate premia since the pandemic.

Keywords: Speculative bubbles; Cryptocurrencies; Bitcoin; Transactions (search for similar items in EconPapers)
JEL-codes: E42 E51 E58 F21 F24 F32 F38 (search for similar items in EconPapers)
Date: 2023-01
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP17859 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Decrypting new age international capital flows (2023)
Working Paper: Decrypting New Age International Capital Flows (2023)
Working Paper: Decrypting New Age International Capital Flows (2023)
Working Paper: Decrypting New Age International Capital Flows (2021)
Working Paper: Decrypting New Age International Capital Flows (2021)
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:cpr:ceprdp:17859

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP17859

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().