Can currency competition work?

【Author】 Fernandez-Villaverde, Jesus; Sanches, Daniel

【Source】JOURNAL OF MONETARY ECONOMICS

【影响因子】4.630

【Abstract】Can competition among privately-issued fiat currencies work? Only sometimes and partially. To show this, we build a model of competition among privately-issued fiat currencies. A purely private arrangement fails to implement an efficient allocation, even though it can deliver price stability under certain technological conditions. Although currency competition creates problems for monetary policy, it is possible to design a policy rule that uniquely implements an efficient allocation. (C) 2019 Elsevier B.V. All rights reserved.

【Keywords】Private money; Currency competition; Cryptocurrencies

【发表时间】2019 OCT

【收录时间】2022-01-02

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