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Bitcoin is Intentionally Ignorant of Traditional Monetary Policy [June 2023]The impact on the macroeconomic environment in turn affects monetary policy. First, upon CBDC issuance, there will be a tightening or loosening. A key result is that, as the Bitcoin transaction fees increase, welfare increases in the coexistence economy, but decreases in an economy in which Bitcoin is. There are two first-order effects on fiscal policy. First, by decreasing a government's benefits from creating money instead of borrowing to make payments.
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