As groups like the Finance and Society Network make clear, banking and finance are too important to be left to financial economists and industry lobbyists. We all need to take some interest in what the powerful do and how they do it. These days this also extends to the huge ecosystem of alternative finance, fintech and decentralised finance (DeFi). Most people’s experience of this at the moment probably extends little further than lurid headlines trumpeting the huge sums made and lost (currently mainly lost) in cryptocurrency. There is, however, a lot more at stake than one might at first think.
Like any focus of fevered speculative activity, cryptocurrency has attracted its fair share of hyperbole and misinformation. In a recent paper in Cambridge Journal of Economics I try to look past this and consider the multiple issues involved.
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