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SUMMARY:The Holy Grail of Crypto Currencies: Ready to replace fiat money?
DTSTART:20180607T120000
DTEND:20180607T130000
DTSTAMP:20260924T170355Z
UID:9dc7f451b9c0a00a5c925e77bb9bc8b2a5d496699fd2720c04fb7e20
CATEGORIES:Conferences - Seminars
DESCRIPTION:Richard Senner (PhD candidate ETHZ)\nThe rise of crypto curren
 cies\, notably bitcoin\, fuels new and old debates about money. This paper
  discusses attempts of so-called stablecoins to complement or replace fiat
  money. In so doing\, we first review today’s endogenous and debt-backe
 d money. Second\, we analyze how stablecoins try to overcome the inherent 
 speculative and deflationary design of fixed supply coins like bitcoin. S
 ome of the stablecoins’ underlying theories correctly state that economi
 c and liquidity expansion go hand in hand. However\, we find that these c
 rypto currencies’ algorithmically planned allocation of new coins is inf
 erior to today’s money creation because it is (i) not market-based\, (ii
 ) not backed by a We Owe You and (iii) using outdated monetarist theories
  in an attempt to control prices. We predict that crypto-monetarism will f
 ail because quantity adjustments are not a sufficient condition for stabl
 e prices. Third\, we show that\, in the real world\, firms set prices acco
 rding to cost-based pricing rules\, so that changes in unit labour costs 
 correlate well with inflation. Once a path-dependent and institutional per
 spective on the labor market is taken\, the importance of coordinated wage
  bargaining for price stability becomes evident. As a consequence\, monet
 ary policy of (crypto) currencies has to overcome the illusionary dichotom
 y between the real and the financial circuit. Instead\, a comprehensive a
 p- proach combining fiscal\, wage\, foreign exchange and interest rate pol
 icies is needed.
LOCATION:UNIL\, Extranef\, room 118 https://planete.unil.ch/plan/?local=EX
 T-118.1
STATUS:CONFIRMED
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