The purpose of this article is to evaluate if cryptocurrencies that have robust technology and anonymous features can be the money of the future. In this study, the transition phases of paper money, which started to be used at the beginning of the 17th century, to bank money, then banknotes and...

I develop a New Keynesian model with two agents, the poor and the rich. The marginal propensity to spend (MPX) of the rich is high and lower than the poor. Helicopter money stimulates the economy and increases the price level. It initially decreases wealth inequality but is inequality-neutral in...

New France, like most European colonies in the New World, suffered from a persistent shortage of metal coins. As Quebec’s imports were limited by French mercantilist policies, their standards of living were constrained by their ability to export a few primary products (mostly fur, cod, timber...

Purpose The article examines Sheikh Ahmad Khatib Al-Minangkabauwi's initial concept of paper money, which in the early 20th century wrote Risala Raf'u Al-Iltibas. Design/methodology/approach This paper uses a qualitative approach based on the critical extraction analysis that can reveal a set of...

The purpose of this editorial is to examine fiat currencies and common tenders (trade‐based money) from a risk perspective. The editorial encourages risk managers to consider the distributive benefits of a multiplicity of currencies and urges them to examine common tenders both old, such as...

The British North American colonies were the first western economies to rely on legislature-issued fiat paper money as their principal internal medium of exchange. This system arose piecemeal across the colonies making the paper money creation story for each colony unique. It was true monetary...

How can cryptocurrency gain legitimacy in the eyes of users? We propose that cryptocurrency firms can acquire market legitimacy that will ultimately reduce institutional uncertainty through rhetorical strategies that circumvent the existing institutional framework (i.e., evasive entrepreneurial...

The paper provides a formalisation of the monetary folk proposition that fiat base money is an asset of the holder but not a liability of the issuer. The issuance of irredeemable fiat base money can have pure fiscal effects on private demand. With irredeemable fiat base money, weak restrictions...

This paper attempts to account for the rising value of cryptocurrencies using basic concepts of monetary theory. A positive value of fiat money is itself problematic inasmuch as that value apparently depends entirely on its expected resale value. A current value entirely dependent on expected...

Cryptocurrency is private money and is costly to produce. In this paper, I ask whether cryptocurrency can serve as a medium of exchange, and whether it can coexist with fiat money as a widely accepted medium of exchange. To answer these questions, I develop two search-theoretic models: a model...

Which monetary regime is associated with the most stable price level? A commodity money regime such as the classical gold standard has long been associated with long-run price stability. But critics of the day argued that the regime was associated with too much short-run price variability and...

New France, like most European colonies in the New World, suffered from a persistent shortage of metal coins. As Quebec could only legally import from France, their standards of living were constrained by their ability to export a few primary products (mostly fur, cod, timber and wheat)....

Purpose This study aims to evaluate the role of the prevailing currency systems in achieving (or departing from) the socio-economic objectives of a progressive and just society; i.e. featuring stability and equitable distribution of wealth. Design/methodology/approach After documenting...

To support the understanding that banks' debt issuance means money creation, while centralized nonbank financial institutions' and decentralized bond market intermediary lending does not, the paper aims to convey two related points: First, the notion of money creation as a result of banks' loan...

This paper is one of the first to quantify the welfare effects of proposed cash suppression policies. We work within the context of a general equilibrium framework in which households face an endogenous cash-in-advance constraint and firms use cash transactions to evade taxes. Eliminating...

The rise of crypto currencies, notably bitcoin, has fueled new and old debates about money. We discuss attempts to complement or replace fiat money by ‘stablecoins'. In a first step, we review today‘s endogenous and debt-backed money. Second, we analyse attempts to use stablecoins in order...

During the colonial era, the French colonial government in Canada experimented with paper money printed on the back of playing cards. The first experiment lasted from 1685 to 1719. In the first years, there was little inflation in spite of a rapidly expanding stock of playing card money. It is...

This paper deals with cryptocurrency bubbles. First, it points out that a number of recent papers on cryptocurrency bubbles are awed due to an insufficient consideration of the fundamental value of cryptocurrencies. As even fiat money is said to exhibit features of bubbles, the same applies to...

In a recent NBER paper, Cutsail and Grubb argue that North Carolina's colonial bills of credit were valued like discount bonds, with a current market value largely determined by the discounted value of the bills when paid into the treasury in taxes or other public payments. Grubb has previously...

The security of Proof-of-Stake (PoS) blockchains rests on the assumption that a large number of contributors have incentives to maintain copies of the underlying distributed ledger. However, excessive block rewards may inflate the value of each unique PoS coin. In this paper, we evaluate the...

It is widely known that in a fiat currency system, governments can create money tokens to meet public expenditure, then take some of them back through taxation or bond issue to adjust the money supply to a desired level. Yet the treasury departments in most countries strive to formulate fiscal...

We are constructing an imperfect competition general equilibrium model, with non-consumable money and labor market; our toolkit is an equilibrium default model of Shubik-Wilson (1978). Our result has an ‘equilibrium volatility' simultaneously occurring at all three markets: labor, goods, and...

A study of Bitcoin P2P trading in 23 fiat currencies finds trading on LocalBitcoins without considering any other issues does not have any consistent impact of the price paid for Bitcoin. There is also no evidence that liquidity or payment method impact on Bitcoin prices. There is however,...

To support the understanding that banks' debt issuance means money creation, while centralized nonbank financial institutions' and decentralized bond market intermediary lending does not, the paper aims to convey two related points: First, the notion of money creation as a result of banks' loan...

The elimination of large-denomination banknotes is one of several options to relax the effective-lower-bound constraint on nominal interest rates. We explore timing issues associated with the calling-in of large notes from a central banker's perspective and employ an optimal stopping model to...

The huge rapid growth of using internet and technology has been affecting all economies whether emerging or developed across the world. The financial sector is one of the sectors that has been directly influenced by technology due to the growth of electronic commerce and electronic payments. The...