Digital Currencies and Macroeconomic Performance: A Global Perspective

Authors

Tirimisiyu F. Oloko, Fountain University, Osogbo, NigeriaFollow
Ahamuefula E. Ogbonna, Centre for Econometrics and Applied Research, Ibadan & University of Ibadan, Ibadan, NigeriaFollow
Idris A. Adediran, Centre for Econometrics and Applied Research, Ibadan, NigeriaFollow

Document Type

Article

Abstract

In this study, we explore the IS-LM-BP framework in analysing the effect of digital currencies on macroeconomic performance from a global perspective. We augment the global macroeconomic dataset by Mohaddes and Raissi (2020) with digital currencies, and analyse the relationship between 2010Q1 and 2019Q4. Overall, we find digital currencies to have significantly positive short-run and no long-run impact on global output, inflation rate, interest rate, and equity stock return. Our results suggest that digital currencies have enhanced global macroeconomic performance, on average. Thus, we recommend that appropriate regulations, rather than an outright ban on digital currencies, should be implemented.

Recommended Citation

F. Oloko, Tirimisiyu; Ogbonna, Ahamuefula E.; and Adediran, Idris A. (2024) "Digital Currencies and Macroeconomic Performance: A Global Perspective," Bulletin of Monetary Economics and Banking: Vol. 27: No. 2, Article 7.
DOI: https://doi.org/10.59091/2460-9196.1954
Available at: https://bulletin.bmeb-bi.org/bmeb/vol27/iss2/7

First Page

351

Last Page

394

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Nigeria

Affiliation

Fountain University, Osogbo