Eurasian Economic Review 

About: Eurasian Economic Review is an academic journal. The journal publishes majorly in the area(s): Human capital & Corporate governance. It has an ISSN identifier of 1309-422X. Over the lifetime, 207 publications have been published receiving 1663 citations.

The relationship between cryptocurrencies and COVID-19 pandemic

Abstract: We examine the relationship between cryptocurrencies (namely Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP)) and COVID-19 cases/deaths. This will help explore whether cryptocurrencies can serve as a hedge against COVID-19. The wavelet coherence analysis indicates that there is initially a negative relationship between Bitcoin and the number of reported cases and deaths; however, the relationship becomes positive during the later period. The findings for Ethereum and Ripple are also similar but with weaker interactions. This supports the hedging role of cryptocurrencies against the uncertainty raised by COVID-19.

A Panel Causality Analysis of the Relationship among Research and Development, Innovation, and Economic Growth in High-Income OECD Countries

Abstract: This study examines possible causal relations among research and development (RD while technological innovations Granger cause economic growth, as presumed by endogenous growth theory. A reverse causality relation does also exist between economic growth and innovation, that is, the rate of growth of output accelerates the rate of technological change. Our multivariate causality tests further reveal that the market size and the rate of innovation together Granger cause RD while an increase in national output and R&D intensity jointly Granger-cause technological change. These findings suggest that both the “technology-push” and “demand-pull” models of innovation equally make sense.

Exploring the dynamics of Bitcoin’s price: a Bayesian structural time series approach

Abstract: Currently, there is no consensus on the real properties of Bitcoin. The discussion comprises its use as a speculative or safe haven asset, while other authors argue that the augmented attractiveness could end up accomplishing money’s properties that economic theory demands. This paper explores the association between Bitcoin’s market price and a set of internal and external factors by employing the Bayesian structural time series approach (BSTS). The idea behind BSTS is to create a superposition of layers such as cycles, trend, and explanatory variables that are allowed to vary stochastically over time, additionally, it is possible to perform a variable selection through the application of the Spike and Slab method. This study aims to contribute to the discussion of Bitcoin price determinants by differentiating among several attractiveness sources and employing a method that provides a more flexible analytic framework that decomposes each of the components of the time series, applies variable selection, includes information on previous studies, and dynamically examines the behavior of the explanatory variables, all in a transparent and tractable setting. The results show that the Bitcoin’s price is negatively associated with the price of gold as well as the exchange rate between Yuan and US Dollar, while positively correlated to stock market index, USD to Euro exchange rate and diverse signs among the different countries’ search trends.

Managing short-term capital flows in new central banking: unconventional monetary policy framework in Turkey

Abstract: During the global financial crisis of 2008–2009, both advanced and emerging countries have implemented significant easing policies on monetary and fiscal fronts. Yet, the recovery, especially in advanced countries, was not as quick or strong as expected. These quantitative easing policies, coupled with weak recovery and restricted fiscal positions, have created not only abundant but also excessively volatile global liquidity conditions, leading to short-term and excessively volatile capital flows to emerging markets. To contain potential risks due to such flows, emerging countries have augmented their existing policy frameworks. Central Bank of the Republic of Turkey (CBRT), for example, has introduced two new policy tools in its new monetary policy framework: the asymmetric interest rate corridor and the reserve option mechanism (ROM). From a capital flows perspective, the interest rate corridor helps smooth fluctuations in supply of foreign funds, whereas the ROM helps contain movements in demand for foreign funds. Both policies have been actively used by the CBRT and appeared to be effective in containing financial stability risks stemming from excessively volatile capital flows.

Effects of geopolitical risks on trade flows: evidence from the gravity model

Abstract: Using a classical gravity model, this paper examines the effects of geopolitical risks on the trade flows, among 164 developing and developed countries, for the period of 1985–2013. For this purpose, we use the new index of geopolitical risks (GPR index). To the best of our knowledge, this is the first paper in the literature that considers the new GPR index in a gravity model. The paper implements the fixed-effects (FE), the random-effects (RE), the Hausman–Taylor (HT), and the Poisson Pseudo-maximum Likelihood estimations. The findings indicate that geopolitical risks negatively affect the trade flows. The paper also discusses the potential policy implications.