We use a theoretical model to set up the conditions for a country to attain monetary stability by allowing for two freely tradable currencies to circulate in parallel. For this parallel system to function properly, confidence in the good behavior of the monetary authorities in charge of the two...

The Coase doctrine is usually presented as a static theorem purporting to explain the spontaneous correction of market defects by agreement between affected parties. However, as Stigler formulated it, those results are only reached under the questionable assumptions of zero transaction costs,...