02032nam a22001097a 4500008004100000100002900041245007500070260003700145300004100182520166200223773003701885230303b           ||||| |||| 00| 0 eng d  aPanda, Prashanta Chandra  aA study of growth of crypto currency with special reference to bitcoin  aThe Indian Journal of Economics   a101(403 pt. 4), Apr, 2021: p.695-716  aThe financial crisis (2007-09) engulfed international banking system. The world witnessed the collapse of mortgaging and investment bank like Lehman Brothers. These events pointed out the instability and the flaws of excessive risk taking and liquidity pumping into economy to stay valued. Freedom in pushing liquidity into the economic system using monetary system and money substitutes has certainly delayed market corrections or signs of setbacks to growth. Role of security derivatives as generating liquidity for banks with no sign of deposit increase in US banks was another major issue questioning the effectiveness of monetary policy. Looking at dollars the currency in circulation i.e. M1 was $3.737 trillion in January 2019, M2 was $14.466 trillion ( $9.3 trillion in savings accounts). Money markets held $857 billion and time deposits held $566 billion. Market continues to observe a massive injection of money and credit. Correlation between M2 growth and inflation rate in US is found to be -0.3738 in the time period 1990 to 2018. The division between credit to consumers and flow to investors from an additional money supply became a hot topic to ponder. On an average money supply was growing at 5.48% while that of inflation was recording 2.41% rise annually. The Fed-s expansionary monetary policy was benefitting more to investors than creditors. In short, money created asset bubbles. Lack of credit worthiness of consumers failed to create accommodative demand in the later period. As a result worldwide investors shifted their attention to gold, treasury notes (2012), stocks (2013) and the US dollar in 2014 and 2015. – Reproduced   aThe Indian Journal of Economics