Inflation and cryptocurrencies revisited: A time-scale analysis

C-Tier
Journal: Economics Letters
Year: 2021
Volume: 206
Issue: C

Score contribution per author:

0.336 = (α=2.02 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This letter revisits the time-series relation between cryptocurrency prices and forward inflation expectations. Using wavelet time-scale techniques, a positive link between cryptocurrencies and forward inflation rates is identified, focused on a brief period surrounding the onset of the COVID-19 pandemic. This coincides with a rapid and synchronized decrease in cryptocurrency prices and forward inflation expectations, followed by a swift recovery to pre-crisis levels. Outside of the crisis period, we find no clear evidence of any inflation hedging capacity of Bitcoin or Ethereum during times of increasing forward inflation expectations.

Technical Details

RePEc Handle
repec:eee:ecolet:v:206:y:2021:i:c:s0165176521002731
Journal Field
General
Author Count
3
Added to Database
2026-01-25