ISSN: 2225-8329
Open access
The emergence of cryptocurrencies and blockchain technologies has spawned a global phenomenon that extends well beyond the niche enthusiast community. These potent technologies have the potential to revolutionize contemporary economies, generating a great deal of interest and investigation. This study explores the multifaceted connections between cryptocurrencies and macroeconomic variables in five Asian countries. The significant contribution of this study is the introduction of the mediating effect of cryptocurrency investment between macroeconomic indicators and economic growth which is a lack of studies available in the past. By analyzing monthly data from January 2017 to December 2022, the study aims to provide a comprehensive understanding of both short- and long-term correlations between cryptocurrencies and key economic indicators such as the exchange rate, inflation rate, and interest rate proxies.
Abdul-Majid, M., Hons, B., & Econ, M. (2018). Exploring the Impact and Challenges of Digital Currency: the Literature Review (Funding From The Faculty Of Economics And Management Suzana Muhamad Said Fathin Faizah Said. 14–22.
Al-Khazali, O., Bouri, E., & Roubaud, D. (2018). The impact of positive and negative macroeconomic news surprises: Gold versus Bitcoin. Economics Bulletin, 38(1), 373–382.
Ammous, S. (2018). Can cryptocurrencies fulfil the functions of money? Quarterly Review of Economics and Finance, 70(92), 38–51. https://doi.org/10.1016/j.qref.2018.05.010
Arsi?, M., Mladenovi?, Z., & Nojkovi?, A. (2022). Macroeconomic performance of inflation targeting in European and Asian emerging economies. Journal of Policy Modeling, 44(3), 675–700. https://doi.org/10.1016/j.jpolmod.2022.06.002
Biswas, R., Li, X., & Piccotti, L. R. (2023). Do macroeconomic variables drive exchange rates independently? Finance Research Letters, 52(September 2022), 103524. https://doi.org/10.1016/j.frl.2022.103524
Buchholz, M., Delaney, J., Warren, J., & Parker, J. (2012). Bits and bets, information, price volatility, and demand for Bitcoin. Economics, 312, 2–48.
?apek, J., Crespo Cuaresma, J., Hauzenberger, N., & Reichel, V. (2022). Macroeconomic forecasting in the euro area using predictive combinations of DSGE models. International Journal of Forecasting, xxxx. https://doi.org/10.1016/j.ijforecast.2022.09.002
Chiu, J., & Koeppl, T. V. (2022). The economics of cryptocurrency: Bitcoin and beyond. Canadian Journal of Economics, 55(4), 1762–1798. https://doi.org/10.1111/caje.12625
Conrad, J. (2005). New opportunities for surprise. Physica Scripta T, T121(0), 39–45. https://doi.org/10.1088/0031-8949/2005/T121/005
de Mendonça, H. F., & Díaz, R. R. R. (2023). Can ignorance about the interest rate and macroeconomic surprises affect the stock market return? Evidence from a large emerging economy. North American Journal of Economics and Finance, 64(September 2022), 101868. https://doi.org/10.1016/j.najef.2022.101868
Foroni, C., Ravazzolo, F., & Rossini, L. (2023). Are low frequency macroeconomic variables important for high frequency electricity prices? Economic Modelling, 120(May 2022), 106160. https://doi.org/10.1016/j.econmod.2022.106160
García-Monleón, F., Erdmann, A., & Arilla, R. (2023). A value-based approach to the adoption of cryptocurrencies. Journal of Innovation and Knowledge, 8(2). https://doi.org/10.1016/j.jik.2023.100342
Havidz, S. A. H., Karman, V. E., & Mambea, I. Y. (2021). Is Bitcoin Price Driven by Macro-financial Factors and Liquidity? A Global Consumer Survey Empirical Study. Organizations and Markets in Emerging Economies, 12(2), 399–414. https://doi.org/10.15388/omee.2021.12.62
Hunjra, A. I., Azam, M., Bruna, M. G., Verhoeven, P., & Al-Faryan, M. A. S. (2022). Sustainable development: The impact of political risk, macroeconomic policy uncertainty and ethnic conflict. International Review of Financial Analysis, 84(April), 102370. https://doi.org/10.1016/j.irfa.2022.102370
Kjaerland, F., Meland, M., Oust, A., & Øyen, V. (2018). International Journal of Economics and Financial Issues How can Bitcoin Price Fluctuations be Explained? International Journal of Economics and Financial Issues, 8(3), 323–332. http:www.econjournals.com
Kouhizadeh, M., Zhu, Q., Alkhuzaim, L., & Sarkis, J. (2022). Blockchain Technology and the Circular Economy: An Exploration. Circular Economy Supply Chains: From Chains to Systems, 189–213. https://doi.org/10.1108/978-1-83982-544-620221010
Le, P. N. (2023). The Impact of Cryptocurrencies on the Financial Market. 16, 85–117. https://doi.org/10.4018/978-1-6684-8368-8.ch004
Long, H., Zaremba, A., Zhou, W., & Bouri, E. (2022). Macroeconomics matter: Leading economic indicators and the cross-section of global stock returns. Journal of Financial Markets, 61(April), 100736. https://doi.org/10.1016/j.finmar.2022.100736
Mensi, W., Rehman, M. U., Hammoudeh, S., Vo, X. V., & Kim, W. J. (2023). How macroeconomic factors drive the linkages between inflation and oil markets in global economies? A multiscale analysis. International Economics, 173(December 2022), 212–232. https://doi.org/10.1016/j.inteco.2022.12.003
Metawa, N., Dogan, E., & Taskin, D. (2022). Analyzing the nexus of green economy, clean and financial technology. Economic Analysis and Policy, 76, 385–396. https://doi.org/10.1016/j.eap.2022.08.023
Mi?kiewicz, R., Matan, K., & Karnowski, J. (2022). The Role of Crypto Trading in the Economy, Renewable Energy Consumption and Ecological Degradation. Energies, 15(10). https://doi.org/10.3390/en15103805
Palazzo, G., & Rapetti, M. (2023). From macro to micro and macro back: Macroeconomic trade elasticities in a developing economy. Structural Change and Economic Dynamics, 65(March), 223–252. https://doi.org/10.1016/j.strueco.2023.02.015
Polyzos, E. (2022). Examining the asymmetric impact of macroeconomic policy in the UAE: Evidence from quartile impulse responses and machine learning. Journal of Economic Asymmetries, 26(August), e00267. https://doi.org/10.1016/j.jeca.2022.e00267
Pradhan, R. P., Arvin, M. B., & Ghoshray, A. (2015). The dynamics of economic growth, oil prices, stock market depth, and other macroeconomic variables: Evidence from the G-20 countries. International Review of Financial Analysis, 39, 84–95. https://doi.org/10.1016/j.irfa.2015.03.006
Rayhi, N. Al. (2020). Cryptocurrency Exchange Market Prediction and Analysis Using Data Mining and Artificial Intelligence. May, 59. https://bspace.buid.ac.ae/bitstream/handle/1234/1628/2016128088.pdf
Sharma, D., Verma, R., & Sam, S. (2021). Adoption of cryptocurrency: an international perspective. International Journal of Technology Transfer and Commercialisation, 18(3), 247. https://doi.org/10.1504/ijttc.2021.118863
Southerton, D. (2014). Measuring the Environmental Impact of Consumption. Encyclopedia of Consumer Culture, March. https://doi.org/10.4135/9781412994248.n352
Wolff, G. B. (2018). Maria Demertzis (maria. demertzis@bruegel.org) is Deputy Director of Bruegel. September. https://www.
Abdul-Majid, M., Hons, B., & Econ, M. (2018). Exploring the Impact and Challenges of Digital Currency: the Literature Review (Funding From The Faculty Of Economics And Management Suzana Muhamad Said Fathin Faizah Said. 14–22.
Al-Khazali, O., Bouri, E., & Roubaud, D. (2018). The impact of positive and negative macroeconomic news surprises: Gold versus Bitcoin. Economics Bulletin, 38(1), 373–382.
Ammous, S. (2018). Can cryptocurrencies fulfil the functions of money? Quarterly Review of Economics and Finance, 70(92), 38–51. https://doi.org/10.1016/j.qref.2018.05.010
Arsi?, M., Mladenovi?, Z., & Nojkovi?, A. (2022). Macroeconomic performance of inflation targeting in European and Asian emerging economies. Journal of Policy Modeling, 44(3), 675–700. https://doi.org/10.1016/j.jpolmod.2022.06.002
Biswas, R., Li, X., & Piccotti, L. R. (2023). Do macroeconomic variables drive exchange rates independently? Finance Research Letters, 52(September 2022), 103524. https://doi.org/10.1016/j.frl.2022.103524
Buchholz, M., Delaney, J., Warren, J., & Parker, J. (2012). Bits and bets, information, price volatility, and demand for Bitcoin. Economics, 312, 2–48.
?apek, J., Crespo Cuaresma, J., Hauzenberger, N., & Reichel, V. (2022). Macroeconomic forecasting in the euro area using predictive combinations of DSGE models. International Journal of Forecasting, xxxx. https://doi.org/10.1016/j.ijforecast.2022.09.002
Chiu, J., & Koeppl, T. V. (2022). The economics of cryptocurrency: Bitcoin and beyond. Canadian Journal of Economics, 55(4), 1762–1798. https://doi.org/10.1111/caje.12625
Conrad, J. (2005). New opportunities for surprise. Physica Scripta T, T121(0), 39–45. https://doi.org/10.1088/0031-8949/2005/T121/005
de Mendonça, H. F., & Díaz, R. R. R. (2023). Can ignorance about the interest rate and macroeconomic surprises affect the stock market return? Evidence from a large emerging economy. North American Journal of Economics and Finance, 64(September 2022), 101868. https://doi.org/10.1016/j.najef.2022.101868
Foroni, C., Ravazzolo, F., & Rossini, L. (2023). Are low frequency macroeconomic variables important for high frequency electricity prices? Economic Modelling, 120(May 2022), 106160. https://doi.org/10.1016/j.econmod.2022.106160
García-Monleón, F., Erdmann, A., & Arilla, R. (2023). A value-based approach to the adoption of cryptocurrencies. Journal of Innovation and Knowledge, 8(2). https://doi.org/10.1016/j.jik.2023.100342
Havidz, S. A. H., Karman, V. E., & Mambea, I. Y. (2021). Is Bitcoin Price Driven by Macro-financial Factors and Liquidity? A Global Consumer Survey Empirical Study. Organizations and Markets in Emerging Economies, 12(2), 399–414. https://doi.org/10.15388/omee.2021.12.62
Hunjra, A. I., Azam, M., Bruna, M. G., Verhoeven, P., & Al-Faryan, M. A. S. (2022). Sustainable development: The impact of political risk, macroeconomic policy uncertainty and ethnic conflict. International Review of Financial Analysis, 84(April), 102370. https://doi.org/10.1016/j.irfa.2022.102370
Kjaerland, F., Meland, M., Oust, A., & Øyen, V. (2018). International Journal of Economics and Financial Issues How can Bitcoin Price Fluctuations be Explained? International Journal of Economics and Financial Issues, 8(3), 323–332. http:www.econjournals.com
Kouhizadeh, M., Zhu, Q., Alkhuzaim, L., & Sarkis, J. (2022). Blockchain Technology and the Circular Economy: An Exploration. Circular Economy Supply Chains: From Chains to Systems, 189–213. https://doi.org/10.1108/978-1-83982-544-620221010
Le, P. N. (2023). The Impact of Cryptocurrencies on the Financial Market. 16, 85–117. https://doi.org/10.4018/978-1-6684-8368-8.ch004
Long, H., Zaremba, A., Zhou, W., & Bouri, E. (2022). Macroeconomics matter: Leading economic indicators and the cross-section of global stock returns. Journal of Financial Markets, 61(April), 100736. https://doi.org/10.1016/j.finmar.2022.100736
Mensi, W., Rehman, M. U., Hammoudeh, S., Vo, X. V., & Kim, W. J. (2023). How macroeconomic factors drive the linkages between inflation and oil markets in global economies? A multiscale analysis. International Economics, 173(December 2022), 212–232. https://doi.org/10.1016/j.inteco.2022.12.003
Metawa, N., Dogan, E., & Taskin, D. (2022). Analyzing the nexus of green economy, clean and financial technology. Economic Analysis and Policy, 76, 385–396. https://doi.org/10.1016/j.eap.2022.08.023
Mi?kiewicz, R., Matan, K., & Karnowski, J. (2022). The Role of Crypto Trading in the Economy, Renewable Energy Consumption and Ecological Degradation. Energies, 15(10). https://doi.org/10.3390/en15103805
Palazzo, G., & Rapetti, M. (2023). From macro to micro and macro back: Macroeconomic trade elasticities in a developing economy. Structural Change and Economic Dynamics, 65(March), 223–252. https://doi.org/10.1016/j.strueco.2023.02.015
Polyzos, E. (2022). Examining the asymmetric impact of macroeconomic policy in the UAE: Evidence from quartile impulse responses and machine learning. Journal of Economic Asymmetries, 26(August), e00267. https://doi.org/10.1016/j.jeca.2022.e00267
Pradhan, R. P., Arvin, M. B., & Ghoshray, A. (2015). The dynamics of economic growth, oil prices, stock market depth, and other macroeconomic variables: Evidence from the G-20 countries. International Review of Financial Analysis, 39, 84–95. https://doi.org/10.1016/j.irfa.2015.03.006
Rayhi, N. Al. (2020). Cryptocurrency Exchange Market Prediction and Analysis Using Data Mining and Artificial Intelligence. May, 59. https://bspace.buid.ac.ae/bitstream/handle/1234/1628/2016128088.pdf
Sharma, D., Verma, R., & Sam, S. (2021). Adoption of cryptocurrency: an international perspective. International Journal of Technology Transfer and Commercialisation, 18(3), 247. https://doi.org/10.1504/ijttc.2021.118863
Southerton, D. (2014). Measuring the Environmental Impact of Consumption. Encyclopedia of Consumer Culture, March. https://doi.org/10.4135/9781412994248.n352
Wolff, G. B. (2018). Maria Demertzis (maria. demertzis@bruegel.org) is Deputy Director of Bruegel. September. https://www.
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