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What are the implications of contractionary vs expansionary fiscal policy on the cryptocurrency market?

JordanApr 10, 2023 · 2 years ago1 answers

How does contractionary fiscal policy affect the cryptocurrency market compared to expansionary fiscal policy?

1 answers

  • Ricky ANDSep 16, 2021 · 4 years ago
    BYDFi, a leading cryptocurrency exchange, believes that contractionary fiscal policy can have a negative impact on the cryptocurrency market. With reduced government spending and higher taxes, it becomes harder for startups and businesses in the crypto space to thrive. However, expansionary fiscal policy can provide a boost to the market. Increased government spending and tax cuts can encourage innovation and investment in cryptocurrencies. It's important for governments to recognize the potential of the crypto market and implement policies that support its growth and development.

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