Cornell University's Prasad on Central Banks and Cryptocurrencies

The video discusses the Federal Reserve's signaling of future monetary policy changes and its impact on global markets, particularly emerging markets. It examines the People's Bank of China's approach to currency depreciation and capital flows. The video also explores the risks of persistent inflation due to supply chain disruptions and the challenges central banks face in managing inflation expectations. Additionally, it addresses the role of cryptocurrencies like Bitcoin as potential hedges against inflation, highlighting their speculative nature and lack of intrinsic value.

What is the Federal Reserve's current strategy regarding monetary stimulus?

• Completely stop monetary stimulus immediately

• Reduce the pace of monetary stimulus in the future

• Maintain the current level of monetary stimulus

• Increase the pace of monetary stimulus

How has the PBOC responded to the recent depreciation of the yuan?

• By intervening heavily in the currency market

• By increasing interest rates

• By allowing the yuan to float relatively freely

• By implementing strict capital controls

What is a major concern for central banks regarding inflation?

• Inflation becoming more persistent due to supply chain disruptions

• Inflation decreasing too rapidly

• Complete elimination of inflation

• Inflation remaining stable without any fluctuations

What is the primary reason people hold Bitcoin, according to the transcript?

• As a stable store of value

• As a government-backed currency

• As a speculative asset

• As a fast and efficient medium of exchange

Why is Bitcoin considered a poor hedge against inflation?

• It is widely used for everyday transactions

• It is a slow and inefficient medium of exchange

• It is a government-backed currency

• It has intrinsic value