Dossier «The Future of Finance: Ethics, Technology and Globalisation» coordinated by Joan LlobetISSUE 10 (NOV 2018)
REVIEW OF THE MONETARY POLICIES OF CENTRAL BANKS Post-crisis: zero interest rates, currency devaluation and cryptocurrencies
Abstract

In the current context, where the objective of the central banks is their fight against deflation and sustainable economic growth, the value of money—that is, the interest rate—and the value of a currency—the exchange rate—play an essential role in making decisions about monetary policy.

The use of new technologies has led to growth in the size and complexity of financial markets. This expansion and transformation of finance has led to the frequent emergence of new financial products which demand a society capable of adequately understanding how these markets operate, in order to be better informed when making saving, investment and borrowing decisions.

Despite the fact that the education of society in financial matters is still a distant concept, technology is advancing and radical changes are being made to how we conduct transactions and guarantee the fulfilment of contracts through a new protocol called «blockchain», which may represent a new trading platform in the financial markets and in society in general.

This article presents a reading on the implications of an extremely loose monetary policy considering two basic instruments: extremely low interest rates and synchronised devaluation of currencies in different economies. Some of the reasons that explain the rise of digital currencies and their security system are also analysed.

digital currency;  cryptocurrency;  blockchain;  interest rates;  exchange rate;  term structure of interest rate;  synchronized currency devaluation; 
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