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040164 SE Seminar on liquidity, money, blockchain, and cryptocurrency (MA) (2019S)

4.00 ECTS (2.00 SWS), SPL 4 - Wirtschaftswissenschaften
Continuous assessment of course work


Note: The time of your registration within the registration period has no effect on the allocation of places (no first come, first serve).


max. 25 participants
Language: English


Classes (iCal) - next class is marked with N

Tuesday 26.03. 15:00 - 19:00 Seminarraum 5 Oskar-Morgenstern-Platz 1 1.Stock
Wednesday 27.03. 15:00 - 19:00 Seminarraum 5 Oskar-Morgenstern-Platz 1 1.Stock
Thursday 28.03. 15:00 - 19:00 Seminarraum 6 Oskar-Morgenstern-Platz 1 1.Stock
Friday 29.03. 15:00 - 19:00 Seminarraum 6 Oskar-Morgenstern-Platz 1 1.Stock
Monday 29.04. 13:15 - 18:15 Seminarraum 5 Oskar-Morgenstern-Platz 1 1.Stock


Aims, contents and method of the course

In this seminar, we will give a quick overview of the money literature, block chain
technology, and then the most recent research on private coins and central bank digital

Assessment and permitted materials

Minimum requirements and assessment criteria

Minimum requirements and assessment criteria
The grade is calculated as a weighted average of the presentation grade (90 %) and
participation grade (10%), including contribution to class discussions. There will be no midterm exam. The minimum requirement for a positive grade is an at least 50% performance.
There are two presentations to the class;
1) You will need to research 2-3 cryptocurrencies and present the following
a. Describe the function of a number of cryptocurrencies and explain what
market/industry they will potentially disrupt.
b. Is blockchain or cryto necessary or not in your opinion
2) Present one of the academic papers (marked with * in the reading list) to the class
and lead the discussions.

Examination topics

Reading list

Reading List
Session 1: Money
In this session, we will follow closely Lagos, Rocheteau, & Wright (2017) and discuss the
following topics: 1) the role of money as a store of value, medium of exchange and unit of
account, 2) the role of intermediation, 3) liquidity and asset.
Lagos, R., Rocheteau, G., & Wright, R. (2017). Liquidity: A new monetarist
perspective. Journal of Economic Literature, 55(2), 371-
440. https://doi.org/10.1257/jel.20141195
KIYOTAKI, N., AND R. WRIGHT (1989): “On Money as a Medium of Exchange,” Journal of
Political Economy, 97 (4), 927–954. [1537,1541]
Recommended (* for the term report)
SAMUELSON, P. A. (1958): “An Exact Consumption-Loan Model of Interest With or Without
the Social Con- trivance of Money,” Journal of Political Economy, 66 (6), 467–482. [1537]
“Econometrica, Vol. 85, No. 5 (September, 2017), 1537–1574 MATTHIAS DOEPKE
FREEMAN, S., AND G. TABELLINI (1998): “The Optimality of Nominal Contracts,” Economic
Theory, 11, 545– 562. [1541]
LAGOS, R., AND R. WRIGHT (2005): “A Unified Framework for Monetary Theory and Policy
Analysis,” Journal of Political Economy, 113 (3), 463–484. [1541]
Kocherlakota, Narayana (1998), Money is Memory, Journal of Economic Theory 81, 232-
*Ariel Rubinstein and Asher Wolinsky (1987) “Middlemen,” Quarterly Journal of Economics
102, 581-94.
*Yang, Ming and Yao Zeng, (2018): The Coordination of Intermediation∗
KIYOTAKI, N., AND J. MOORE (1997): “Credit Chains,” Unpublished Manuscript, Princeton
University. [1540]
Liquidity and Asset
Nobuhiro Kiyotaki and John H. Moore (1997) “Credit Cycles,” Journal of Political
Economy 105, 211-48.
Ozdenoren, Emre, Kathy Yuan and Shengxing Zhang (2019)“ On Money as a collateral
Ozdenoren, Emre, Kathy Yuan and Shengxing Zhang (2019) “Dynamic Asset-Backed
Security Design”
Session 2: Bitcoin and BLT technology
In this session, we will follow the textbook Bitcoin and Cryptocurrency Technologies: A
Comprehensive Introduction by Narayanan, Bonneau, Felten, Miller and Goldfeder (referred
to as NBFMG below) to cover the following basics.
Intro to cryptography & crypto currencies
Overview of consensus protocols
Bitcoin nuts and bolts
Proof of Work and mining strategies; Proof of Stake
Mining attacks
Ethereum: Decentralized Apps, EVM, and the Ethereum blockchain
Anonymity and Privacy
Legal Aspect
Recommended reading:
*Griffin, John and Amin Shams Is Bitcoin Really Un-Tethered?
*Wei, Wang Chun, 2018, The Impact of Tether Grants on Bitcoin, Working Paper.
*Yukun Liu and Aleh Tsyvinski, Risks and Returns of Cryptocurrency
Saleh, Fahad, 2017, Blockchain without waste: Proof-of-stake, Discussion paper, working
Nakamoto, Satoshi, 2008, Bitcoin: A peer-to-peer electronic cash system, Online Publication.
Biais, Bruno, Christophe Bisiere, Matthieu Bouvard, and Catherine Casamatta, 2017, The
blockchain fold theorem, Preliminary Work in Progress.
Athey, Susan, Ivo Parashkevov, Vishnu Sarukkai, and Jing Xia, 2016, Bitcoin pricing,
adoption, and usage: Theory and evidence, Working Paper.
Budish, Eric (2018), The Economic Limits of Bitcoin and the Blockchain, mimeo
University of Chicago.
Cong, Lin William, Zhiguo He and Jiasun Li (2018), Decentralized Mining in Centralized
Pools, mimeo University of Chicago Booth School of Business.
Session 3: Tokenomics and Private Coins
In this session, we will review the most recent academic research on private coins.
Required reading:
Li, Jiasun, and William Mann, 2018, Initial coin offering and platform building, Working Paper.
Michael Sockin and Wei Xiong, 2018 A Model of Cryptocurrencies
Lin William Cong, Ye Li and Neng Wang, 2018 Tokenomics: Dynamic Adoption and Valuation
Recommended Reading (all with *)
Gans, Joshua S, and Hanna Halaburda, 2015, Some economics of private digital currency, in Economic
Analysis of the Digital Economy . pp. 257–276 (University of Chicago Press).

Association in the course directory

Last modified: Mo 07.09.2020 15:28