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Firm Level Heterogeneity and the Impact of Monetary Policy on Labour Demand

Author

Listed:
  • Gert Bijnens
  • John Hutchinson
  • Arthur Saint-Guilhem

Abstract

This paper examines the effects of cryptocurrency regulation on price deviations in the Bitcoin market, focusing on regulatory implementations rather than announcements. I construct a unique database of regulations across 28 countries since 2009, categorized into seven types, and analyse Bitcoin price data since September 2013. Our findings indicate that the Law of One Price does not hold in the Bitcoin market. Contrary to initial conjectures, more regulated markets exhibit higher price convergence with the USD benchmark. According to the type of regulation, this result is mixed. Regulations enhancing reliability and transparency, such as the expansion of securities laws, banking and payment regulations, and the implementation of regulatory sandboxes foster price convergence. In contrast, partial bans—primarily targeting banks—exacerbate price divergence, underscoring the significant role of financial institutions in the Bitcoin market. Additionally, anti-money laundering/countering the financing of terrorism (AML/CFT) laws reduce local prices regardless of USD price level, suggesting the cryptoasset's use in illicit activities..

Suggested Citation

  • Gert Bijnens & John Hutchinson & Arthur Saint-Guilhem, 2026. "Firm Level Heterogeneity and the Impact of Monetary Policy on Labour Demand," Working papers 1053, Banque de France.
    • Handle: RePEc:bfr:banfra:1053
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    File URL: https://www.banque-france.fr/system/files/2026-07/WP1053.pdf
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    Keywords

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    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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