The main purpose of this paper is to investigate whether the cryptocurrency market affects financial stability and economic growth of India. The study used quarterly data on bitcoin, financial stability, inflation rate, real GDP, economic volatility uncertainty, exchange rate, and market volatility index for the period 2015Q1-2021Q4. The robustness of the findings was confirmed by the fully modified OLS (FMOLS) and canonical cointegration regression (CCR). The study results demonstrated that an increase in cryptocurrency investments will affect the financial stability of India significantly. Each 1% increase in the cryptocurrency would reduce the financial stability by 5% approximately. However, there was a marginal effect of cryptocurrency on economic growth. The results also found that exchange rate volatility and inflationary pressure would also deteriorate the financial stability of the country. Furthermore, the results also identified positive and significant cointegration between economic growth and financial stability. Due to most transactions in the economy being done through the financial system, it is paramount for economic growth. Going forward, aggressive monetary policy tightening, volatility in capital flows and exchange rates, deanchoring of inflation expectations, faltering in the economic recovery, disruptions due to global supply chains and climate change will be the major risks to the financial stability and economic growth of India.

More from our Archive

• DOI: 10.1001/jama.2023.13239 2023

  Donanemab in Early Symptomatic Alzheimer Disease

  John R. Sims, Jennifer A. Zimmer, Cynthia D. Evans, Ming Lu, Paul Ardayfio, JonDavid Sparks, Alette M. Wessels, Sergey Shcherbinin, Hong Wang, Emel Serap Monkul Nery, Emily C. Collins, Paul Solomon, Stephen Salloway, Liana G. Apostolova, Oskar Hansson, Craig Ritchie, Dawn A. Brooks, Mark Mintun, Daniel M. Skovronsky, Rafael Abreu, Pinky Agarwal, Puja Aggarwal, Marc Agronin, Alison Allen, Dario Altamirano, Gustavo Alva, James Andersen, Allan Anderson, Donald Anderson, Jennifer Arnold, Takashi Asada, Yasuhiro Aso, Vikram Atit, Ricardo Ayala, Michael Badruddoja, Hanna Badzio-jagiello, Michal Bajacek, David Barton, David Bear, Sabrina Benjamin, Richard Bergeron, Perminder Bhatia, Sandra Black, Allan Block, Mohammad Bolouri, Wendy Bond, Jean Bouthillier, Sharon Brangman, Bruce Brew, Sarah Brisbin, Toby Brisken, Amy Brodtmann, Mark Brody, Jared Brosch, Celia Brown, Paul Brownstone, Sylwia Bukowczan, Jeffrey Burns, Alicia Cabrera, Horace Capote, Angel Carrasco, Jose Cevallos Yepez, Eric Chavez, Howard Chertkow, Urszula Chyrchel-paszkiewicz, Anthony Ciabarra, Edward Clemmons, Daniel Cohen, Robert Cohen, Ian Cohen, Mauricio Concha, Brian Costell, Denis Crimmins, Yvette Cruz-pagan, Adolfo Cueli, Robert Cupelo, Maciej Czarnecki, David Darby, P.l.j. Dautzenberg, Peter De Deyn, Jose De La Gandara, Kenneth Deck, David Dibenedetto, Mark Dibuono, Eric Dinnerstein, Ahmet Dirican, Shanker Dixit, Jacek Dobryniewski, Ryan Drake, Peter Drysdale, Ranjan Duara, John Duffy, Aaron Ellenbogen, Victor Faradji, Marc Feinberg, Robert Feldman, Simon Fishman, Stephen Flitman, Concetta Forchetti, Ivonne Fraga, Andrew Frank, Benjamin Frishberg, Hiroto Fujigasaki, Hiroyuki Fukase, Ileana Fumero, Kenichi Furihata, Christopher Galloway, Rekha Gandhi, Kristi George, Marcel Germain, Darren Gitelman, Nicholas Goetsch, Danielle Goldfarb, Mark Goldstein, Lawrence Goldstick, Yaneicy Gonzalez Rojas, Ira Goodman, David Greeley, Carl Griffin, Eric Grigsby, Daniel Grosz, Karl Hafner, David Hart, Sam Henein, Brad Herskowitz, Shinji Higashi, Yasuto Higashi, Gilbert Ho, Jonathan Hodgson, Mark Hohenberg, Larry Hollenbeck, Richard Holub, Tomokatsu Hori, Jakub Hort, Jan Ilkowski, K. Jennifer Ingram, Mitchell Isaac, Mitsunori Ishikawa, Lubos Janu, Mark Johnston, William Julio, William Justiz, Tomotsugu Kaga, Tatsuya Kakigi, Marvin Kalafer, Mikiko Kamijo, Jeffrey Kaplan, Michael Karathanos, Sadao Katayama, Siddharth Kaul, Andrew Keegan, Diana Kerwin, Uzma Khan, Arifulla Khan, Noriyuki Kimura, Gregory Kirk, Gabriela Klodowska, Hisatomo Kowa, Christen Kutz, Joseph Kwentus, Rosalyn Lai, Ayesha Lall, Mary Lawrence, Elly Lee, Ramon Leon, Gary Linker, Pawel Lisewski, Jonathan Liss, Collins Liu, Scott Losk, Ewelina Lukaszyk, Jennifer Lynch, Stephen Macfarlane, Josephine Macsweeney, Nicholas Mannering, Oto Markovic, Donald Marks, Joseph Masdeu, Yutaka Matsui, Kunitaka Matsuishi, Peter Mcallister, Brock Mcconnehey, Alvin Mcelveen, Lora Mcgill, Adam Mecca, Michael Mega, Jason Mensah, Anatol Mickielewicz, Artin Minaeian, Bharat Mocherla, Cynthia Murphy, Paul Murphy, Hirotaka Nagashima, Anil Nair, Malini Nair, John Nardandrea, Marshall Nash, Ziad Nasreddine, Yoshihiko Nishida, Jeffrey Norton, Lazaro Nunez, Jun Ochiai, Takuya Ohkubo, Yasuyuki Okamura, Eugene Okorie, Esteban Olivera, John O'mahony, Omid Omidvar, Desiree Ortiz-Cruz, Alexander Osowa, Michelle Papka, Alicia Parker, Paayal Patel, Ashok Patel, Meenakshi Patel, Claude Patry, Elizabeth Peckham, Michael Pfeffer, Alison Pietras, Michael Plopper, Anton Porsteinsson, Raphael Poulin Robitaille, Niels Prins, Orlando Puente, Marcin Ratajczak, Margaret Rhee, Angela Ritter, Ramon Rodriguez, Lilia Rodriguez Ables, Julio Rojas, Jeffrey Ross, Paule Royer, Jay Rubin, David Russell, Sterre Malou Rutgers, Stephanie Rutrick, Martin Sadowski, Beth Safirstein, Takafumi Sagisaka, Douglas Scharre, Lon Schneider, Curtis Schreiber, Michael Schrift, Paul Schulz, Harvey Schwartz, Julie Schwartzbard, John Scott, Lissette Selem, Pramod Sethi, Sharon Sha, Kenneth Sharlin, Sanjiv Sharma, Thomas Shiovitz, Rajinder Shiwach, Martin Sladek, Bart Sloan, Amanda Smith, Paul Solomon, Ehab Sorial, Evelio Sosa, Mary Stedman, Susan Steen, Lee Stein, Arkadiy Stolyar, John Stoukides, Shinji Sudoh, James Sutton, Junaid Syed, Kinga Szigeti, Hisatsugu Tachibana, Yuichi Takahashi, Amane Tateno, James Dale Taylor, Kelly Taylor, Oleg Tcheremissine, Adly Thebaud, Stephen Thein, Louise Thurman, Steven Toenjes, Hiromasa Toji, Misaki Toma, Duc Tran, Pilar Trueba, Masashi Tsujimoto, Raymond Turner, Akiyoshi Uchiyama, Dorota Ussorowska, Sanjeev Vaishnavi, Elena Valor, Joel Vandersluis, Alberto Vasquez, Juan Velez, Cherian Verghese, Klaudia Vodickova-borzova, David Watson, David Weidman, David Weisman, Alexander White, Katherine Willingham, Izabela Winkel, Paul Winner, Jaron Winston, Adam Wolff, Hideo Yagi, Hideki Yamamoto, Sanjay Yathiraj, Yasumasa Yoshiyama, Marzena Zboch,

• DOI: 10.1785/bssa0860030575 2023

  Three-dimensional simulation of earthquakes on the Los Angeles fault system

  Kim B. Olsen, Ralph J. Archuleta

• DOI: 10.1785/bssa0860030547 2023

  Source process of the 1995 Kobe earthquake: Determination of spatio-temporal slip distribution by Bayesian modeling

  Satoshi Ide, Minoru Takeo, Yasuhiro Yoshida

• DOI: 10.1785/bssa0860030761 2023

  Surface faulting of the 1954 Fairview Peak (<i>MS</i>7.2) and Dixie Valley (<i>MS</i>6.8) earthquakes, central Nevada

  S. J. Caskey, S. G. Wesnousky, P. Zhang, D. B. Slemmons

• DOI: 10.1785/bssa0860030683 2023

  Earthquake size as a function of fault slip rate

  John G. Anderson, Steven G. Wesnousky, Mark W. Stirling

• DOI: 10.1126/science.adf5872 2023

  Interface engineering for high-performance, triple-halide perovskite–silicon tandem solar cells

  Silvia Mariotti, Eike Köhnen, Florian Scheler, Kári Sveinbjörnsson, Lea Zimmermann, Manuel Piot, Fengjiu Yang, Bor Li, Jonathan Warby, Artem Musiienko, Dorothee Menzel, Felix Lang, Sebastian Keßler, Igal Levine, Daniele Mantione, Amran Al-Ashouri, Marlene S. Härtel, Ke Xu, Alexandros Cruz, Jona Kurpiers, Philipp Wagner, Hans Köbler, Jinzhao Li, Artiom Magomedov, David Mecerreyes, Eva Unger, Antonio Abate, Martin Stolterfoht, Bernd Stannowski, Rutger Schlatmann, Lars Korte, Steve Albrecht

• DOI: 10.1126/science.adg0091 2023

  Interface passivation for 31.25%-efficient perovskite/silicon tandem solar cells

  Xin Yu Chin, Deniz Turkay, Julian A. Steele, Saba Tabean, Santhana Eswara, Mounir Mensi, Peter Fiala, Christian M. Wolff, Adriana Paracchino, Kerem Artuk, Daniel Jacobs, Quentin Guesnay, Florent Sahli, Gaëlle Andreatta, Mathieu Boccard, Quentin Jeangros, Christophe Ballif

• DOI: 10.1126/science.adh2586 2023

  Experimental evidence on the productivity effects of generative artificial intelligence

  Shakked Noy, Whitney Zhang

• DOI: 10.1126/science.adg4084 2023

  An improved bound on the electron’s electric dipole moment

  Tanya S. Roussy, Luke Caldwell, Trevor Wright, William B. Cairncross, Yuval Shagam, Kia Boon Ng, Noah Schlossberger, Sun Yool Park, Anzhou Wang, Jun Ye, Eric A. Cornell

• DOI: 10.1001/jama.2023.10578 2023

  Diabetic Foot Ulcers

  David G. Armstrong, Tze-Woei Tan, Andrew J. M. Boulton, Sicco A. Bus