All that glitters: A theory of multiple bubbles with implications for cryptocurrencies

IF 4.3 2区经济学 Q1 BUSINESS, FINANCE

Journal of Monetary Economics Pub Date : 2025-03-06 DOI:10.1016/j.jmoneco.2025.103764

Jungsuk Han , Yenan Wang

引用次数: 0

Abstract

We analyze a model of heterogeneous rational bubbles that compete and complement each other. When some bubbles burst, surviving ones gain value, offsetting losses from collapsed bubbles. This “compensation effect,” combined with diversification, enhances welfare. A portfolio of fragile bubbles may rival a single, stable bubble. The stationary equilibrium imposes a tight upper bound on bubble size, considering covariance structures, price fluctuations, and the emergence of new bubbles. These results have important policy implications, particularly for managing crypto ETFs and issuing CBDCs, highlighting the potential benefits of a diversified approach to fragile financial systems.

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所有这些都是闪闪发光的：一个对加密货币有影响的多重泡沫理论

我们分析了一个相互竞争和互补的异质理性泡沫模型。当一些泡沫破裂时，幸存的泡沫会获得价值，抵消泡沫破裂带来的损失。这种“补偿效应”与多样化相结合，提高了福利。脆弱泡沫的组合可能与单一的稳定泡沫相匹敌。考虑到协方差结构、价格波动和新泡沫的出现，平稳均衡对泡沫大小施加了严格的上限。这些结果具有重要的政策意义，特别是对于管理加密etf和发行cbdc而言，突出了多样化方法对脆弱金融体系的潜在好处。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Monetary Economics Multiple-

CiteScore

7.20

自引率

4.90%

发文量

审稿时长

74 days

期刊介绍： The profession has witnessed over the past twenty years a remarkable expansion of research activities bearing on problems in the broader field of monetary economics. The strong interest in monetary analysis has been increasingly matched in recent years by the growing attention to the working and structure of financial institutions. The role of various institutional arrangements, the consequences of specific changes in banking structure and the welfare aspects of structural policies have attracted an increasing interest in the profession. There has also been a growing attention to the operation of credit markets and to various aspects in the behavior of rates of return on assets. The Journal of Monetary Economics provides a specialized forum for the publication of this research.