"We construct a model where capital competes with fiat money as a medium of exchange, and we establish conditions on fundamentals under which fiat money can be both valued and socially beneficial. When the socially efficient stock of capital is too low to provide the liquidity agents need, they...

We develop a random-matching model to study the price dynamics of monies produced privately according to a time-consuming mining technology. We provide examples of mining technologies for which there exists a unique equilibrium where the value of money increases over time and reaches a steady...

We construct a model in which capital competes with fiat money as a medium of exchange, and establish conditions on fundamentals under which fiat money can be both valued and socially beneficial. When the socially efficient stock of capital is too low to provide the liquidity agents need, they...