Concept

Declining influence of monetary policy

The International Monetary Fund cautioned that the legal adoption of bitcoin would reduce the efficacy of monetary policy, since El Salvador would essentially be surrendering monetary autonomy to an outside influence. Increased reliance on erratic international capital flows could also cause significant swings in the prices of domestic goods and services, as the causes of fluctuations in the price of bitcoin are much more difficult to determine than those of currencies such as the US Dollar.

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Updated 2021-11-04

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Cryptoeconomics

Economics

Social Science

Empirical Science

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