This article addresses the difficulty introducing a new currency into a domestic economy. The aim is to study how a … government can influence private agents in their decision to accept, or reject a new fiat currency. Different historical examples … of currency. We show that the legal or "illegal" tender of the old currency, and the quantity in the economy play an …

. We show that the same frictions that give fiat money a positive value generate an inefficient quantity of goods in each …

In this paper I first provide an overview of alternative approaches to money, contrasting the orthodox approach, in … which money is neutral, at least in the long run; and the Marx-Veblen-Keynes approach, or the monetary theory of production …. I then focus in more detail on two main categories: the orthodox approach that views money as an efficiency …

money and finance should not matter much, the alternative tradition-from Veblen and Keynes to Galbraith and Minsky …-provides the basis for developing an approach that puts money and finance front and center. Including the theory of social costs …

We construct a search-theoretic model where fiat money coexists with real assets, and all assets can be used as a media … facts: (i) fiat money can be valued despite being dominated in its rate of return; (ii) real assets with identical dividend …

categories: views about the origins of money and the role of taxes in the acceptance of government currency, views about fiscal …One of the main contributions of Modern Money Theory (MMT) has been to explain why monetarily sovereign governments …

This paper adopts mechanism design to investigate the coexistence of fiat money and higher-return assets. We consider … an economy with pairwise meetings where fiat money and risk-free capital compete as means of payment, as in [28]. The … societyʼs welfare. We show that in any stationary monetary equilibrium capital commands a higher rate of return than fiat money. …

Many search models of money rely on the double coincidence of real wants problem to generate a role for money and, for … the sake of tractability, assume money to be indivisible. In this article, we study the implications of these two … assumptions for the formation of the terms of trades and the purchasing power of money. In the First part of the paper we show …

This paper advances three fundamental propositions regarding money: (1) As R. W. Clower (1965) famously put it, money … buys goods and goods buy money, but goods do not buy goods. (2) Money is always debt; it cannot be a commodity from the … possible. These three propositions are used to build a theory of money that is linked to common themes in the heterodox …