Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Cryptos and the Role of Monetary Policy in Crises | Podcast

Cryptos and the Role of Monetary Policy in Crises | Podcast

Ben Lobel, Martin Essex, MSTA,

Talking points on this podcast:

  • Can monetary policy be effective against coronavirus?
  • What happens when central banks get involved with cryptos?
  • How to ‘spring clean’ your portfolio

This time on Trading Global Markets Decoded, our host Martin Essex is joined by Andrew Milligan, head of global strategy at Aberdeen Standard Investments. This time, we discuss the efficacy of monetary policy in countering coronavirus, the likely outcome of central bank experiments with cryptocurrencies, and how to ‘spring clean’ your portfolio. You can listen to this podcast by clicking on the YouTube link above or by using one of the alternative platforms listed below.

Can monetary policy be effective against Coronavirus?

The podcast begins with monetary policy and its effect on the coronavirus outbreak. “There’s a general view that any interest rate changes by the central banks are more symbolic than providing a great deal of support,” Andrew says. “Clearly a reduction in borrowing costs is helpful for a number of firms [hindered by coronavirus], but many others are going to need a whole series of other measures, which hopefully central banks will also be able to supply.”

These include keeping corporate bond markets open, making sure banks are continuing to lend, and providing overdrafts. “But other aspects will be fiscal. If firms are facing tax problems it’s for the tax authorities to be assisting, if households are facing shortfalls in income, it’ll have to be through the benefits system probably, perhaps the tax system if this is a longstanding affair.”

How much can cryptos affect monetary policy?

What about the effect cryptos can have on monetary policy decisions? “The amount of money currently invested in cryptocurrencies is relatively small; it would not form part of the portfolio of most retail investors and certainly not in institutional terms,” he says. Liquidity is a big reason for this, with Andrew pointing to the likes of gilts, Japanese bonds and Treasuries as much more liquid assets.

He adds that part of the problem faced by a number of the digital currencies is the complexity of the system – a whole series of wallets and exchanges which aren’t necessarily compatible to buying and selling such products. “So I don’t think there is much of an implication [on monetary policy]; central banks are always on the lookout for asset price bubbles, but it’s probably more of an issue for financial policy regulation and making sure that anyone investing in these products is walking in with eyes wide open, than actually much of an implication today for central bank policy making or the price of financial assets.”

Cryptocurrency Trading
Cryptocurrency Trading
Recommended by Ben Lobel
Discover more on cryptos with our Bitcoin forecast
Get My Guide

For more ways of listening to the DailyFX podcast, click on one of the additional channels below.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.