Post by cjm on Nov 29, 2016 7:14:43 GMT
Money’s future – by a non-banker. Do we need another GFC?
An issue that emerges from the IMF discussion note on virtual currency (such as Bitcoin) is constraints imposed on monetary policy by such currency. In particular it limits money creation by central banks (perhaps a good thing?). Bitcoin is also by nature deflationary. One will have to rethink the role of monetary policy and available mechanisms.
Also see this link
An issue that emerges from the IMF discussion note on virtual currency (such as Bitcoin) is constraints imposed on monetary policy by such currency. In particular it limits money creation by central banks (perhaps a good thing?). Bitcoin is also by nature deflationary. One will have to rethink the role of monetary policy and available mechanisms.
Also see this link