News Archive

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Equilibrium Bitcoin Pricing

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Working Paper
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In this working paper from Bruno Biais ( HEC Paris), Christophe Bisière, Matthieu Bouvard, Catherine Casamatta and Albert J Menkveld (EconPol Europe, Toulouse School of Economics, Universite Toulouse Capitole [TSM-Research]), the authors offer an equilibrium model of cryptocurrency pricing and confront it to new data on bitcoin transactional benefits and costs. The model emphasises that the fundamental value of the cryptocurrency is the stream of net transactional benefits it will provide, which depend on its future prices.

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Arrows signifying interest rates

The Real Interest Rates Across Monetary Policy Regimes

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EconPol Policy Report
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Hernán D. Seoane (EconPol Europe, Universidad Carlos III de Madrid) has reviewed the main theories of interest rate determination and studied the dynamics of the real interest rate in the US. Using cointegration techniques, he searched for equilibrium relationships between the real interest rate, monetary factors and real factors and studied how these relationships change with the policy regimes.

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European Central Bank Frankfurt

Sliding Down the Slippery Slope? Trends in the Rules and Country Allocations of the Eurosystem’s PSPP and PEPP

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Policy Report
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The Eurosystem has become one of the crucial players in the market for euro area government bonds: after first substantive purchases through the Securities Market Programme (SMP) in 2010, the Eurosystem’s involvement has reached a new breadth and magnitude with the establishment of the Public Sector Purchase Programme (PSPP) in 2015.

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Impact of the Covid-19 Lockdown on Firm Liquidity and Solvency: The Case of France

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EconPol Opinion
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The confinement measures introduced in several countries to fight the Covid-19 pandemic have imposed a high toll on many economic activities. In this post, EconPol's Stefano Schiavo and co-authors exploit recent evidence on French firms recently published by the OFCE-SciencesPo to discuss the policy options facing European governments and the broader implications of firm exit for competitiveness. Using data on a large number of French firms, they simulate the impact of the lockdown on their balance sheets to estimate the share of companies facing liquidity or solvency issues.

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Event | 10 July | Tax Incentives for Research and Development: Is There an Optimal Policy Mix?

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EconPol Event
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Using the tax system to support research and development has become a very popular policy tool. Many countries are implementing incentives such as tax credits, patent boxes and direct subsidies to stimulate new R&D. But is there really a causal relationship between these policies and the R&D spending done by the businesses receiving the incentives? And if so, is this R&D productive, and does it have an impact on the wider economy?

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