Descriptions
Using repeated large-scale surveys of U.S. households, we study the crypto currency investment decisions and motives of households relative to other financial assets. Cryptocurrency holders tend to be young, white, male and more libertarian relative to non-crypto holders. They expect much higher rates of returns for crypto and perceive it as relatively safer than do other households. They also view it as a better hedge against inflation. For those holding cryptocurrencies, changes in Bitcoin prices translate into their purchases of durable goods. Finally, exogenously-provided information about historical returns of cryptocurrencies leads individuals to increase their desired crypto holdings and makes them more likely to actually purchase cryptocurrency subsequently. We compare these views and behaviors to those of households toward other financial assets and argue that cryptocurrency is unique in many of these respects.
About the Speaker
Olivier Coibion is the Malcolm Forsman Centennial Professor of Economics at The University of Texas at Austin. He received a BA in Economics and Political Economy from the University of California at Berkeley (1999) and a PhD from the University of Michigan at Ann Arbor (2007). He works on macroeconomic topics, including monetary policy, how agents for their expectations, inflation measurement, commodity prices, inequality, the efficacy of stimulus payments, and policy communication. Prior to joining UT Austin, Olivier worked at the International Monetary Fund, the Council of Economic Advisers, the Brookings Institution, and the College of William and Mary. He is also affiliated with the National Bureau of Economic Research and serves as a consultant to a number of central banks. Olivier’s work has been published in American Economic Review, Journal of Political Economy, Quarterly Journal of Economics, Journal of Monetary Economics, International Journal of Central Banking among others.
