Mark Mason
Well-known member
Economic Research Uses Bitcoin to Reveal Government Currency Manipulation and Capital Controls
Gina C. Pieters, Ph.D. economist at Trinity University, shows in her paper that a properly adjusted Bitcoin price can shed light on how countries manipulate their exchange rate and/or institute capital controls.
Typically, economists discover the intensity of currency manipulation and capital controls via other international measures, stocks, globally traded commodities, or even the infamous Big Mac Index. She recently presented her work at The Royal Economic Society’s annual conference, although much of her data is for 2014-2015 because of the data availability bottleneck from other countries that institute currency and capital controls. Her study utilizes the fact that Bitcoin is traded 24/7 virtually with all data in the open so researchers would not have to wait for data collection like previous methods. She also emphasizes that Bitcoin’s minuscule transportation costs and separation from nation-states make it less prone than commodity measures to cross-boarder trade price differential and trade barriers imposed by countries.
Read more: https://www.dashforcenews.com/econo...t-currency-manipulation-and-capital-controls/
Gina C. Pieters, Ph.D. economist at Trinity University, shows in her paper that a properly adjusted Bitcoin price can shed light on how countries manipulate their exchange rate and/or institute capital controls.
Typically, economists discover the intensity of currency manipulation and capital controls via other international measures, stocks, globally traded commodities, or even the infamous Big Mac Index. She recently presented her work at The Royal Economic Society’s annual conference, although much of her data is for 2014-2015 because of the data availability bottleneck from other countries that institute currency and capital controls. Her study utilizes the fact that Bitcoin is traded 24/7 virtually with all data in the open so researchers would not have to wait for data collection like previous methods. She also emphasizes that Bitcoin’s minuscule transportation costs and separation from nation-states make it less prone than commodity measures to cross-boarder trade price differential and trade barriers imposed by countries.
Read more: https://www.dashforcenews.com/econo...t-currency-manipulation-and-capital-controls/