LIQUIDITY, PRICES, SEIGNIORAGE, AND THE TRANSITION FROM BARTER TO FIAT MONEY
| العنوان: | LIQUIDITY, PRICES, SEIGNIORAGE, AND THE TRANSITION FROM BARTER TO FIAT MONEY |
|---|---|
| المؤلفون: | Young Sik Kim |
| المصدر: | Macroeconomic Dynamics. 5:353-379 |
| بيانات النشر: | Cambridge University Press (CUP), 2001. |
| سنة النشر: | 2001 |
| مصطلحات موضوعية: | Inflation, Economics and Econometrics, Endogenous money, Currency, media_common.quotation_subject, Fiat money, Economics, Hyperinflation, Barter, Monetary economics, Local currency, Seigniorage, media_common |
| الوصف: | The government-led transition from barter to fiat money and its possible failure are analyzed in the Kiyotaki-Wright model when prices are determined endogenously by the strategic bargaining process. The transition is shown to be more inflationary as the government becomes less patient and less credible. The possibility of breakdown in fiat money due to uncertainty in the size of government and its patience implies longer transition path and higher expected inflation. An application to the transition from local currencies to currency integration shows that local governments are tempted to issue more currency to extract seigniorage from foreign as well as home agents. As long as the degree of economic integration is sufficiently large, an increasing frequency of trading opportunities implies lower price levels and higher welfare relative to the local currency regime. It is when the two countries are fully integrated that the world economy with the unified currency achieves the highest welfare. |
| تدمد: | 1469-8056 1365-1005 |
| الوصول الحر: | https://explore.openaire.eu/search/publication?articleId=doi_________::611e9df55eda2de58936096affdfe882Test https://doi.org/10.1017/s1365100500020022Test |
| حقوق: | CLOSED |
| رقم الانضمام: | edsair.doi...........611e9df55eda2de58936096affdfe882 |
| قاعدة البيانات: | OpenAIRE |
| تدمد: | 14698056 13651005 |
|---|