Money mining and price dynamics: The case of divisible currencies

【Author】 Choi, Michael; Rocheteau, Guillaume

【Source】JOURNAL OF ECONOMIC DYNAMICS & CONTROL

【影响因子】1.620

【Abstract】We develop a random-matching model to study the price dynamics of divisible monies produced privately through mining. The equilibrium set is composed of a unique equilibrium where the value of money increases until it reaches a steady state and, if money has no intrinsic value, a continuum of perfect-foresight equilibria where the price of money inflates and bursts over time. Early on private money is held for a speculative motive and it acquires a transactional role when money supply becomes sufficiently abundant. We study different mining and matching technologies, fiat and commodity monies, single and Money competing currencies. (C) 2021 Elsevier B.V. All rights reserved.

【Keywords】Money; Search; Private and competing monies; Mining; Divisible

【发表时间】2022 SEP

【收录时间】2022-09-15

【文献类型】实证数据

【主题类别】

区块链治理-市场治理-市场分析