A model of private bank-note issue

B-Tier
Journal: Review of Economic Dynamics
Year: 1999
Volume: 2
Issue: 1
Pages: 104-136

Authors (2)

Ricardo de O. Cavalcanti (not in RePEc) Neil Wallace (Pennsylvania State University)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A random-matching model (of money) is formulated in which there is complete public knowledge of the trading histories of a subset of the population, called the banking sector, and no public knowledge of the trading histories of the complement of that subset, called the non bank sector. Each person, whether a banker or a non banker, is assumed to have the technological capability to create indivisible, distinct, and durable objects called notes. If outside money is indivisible and sufficiently scarce, then an optimal mechanism is shown to have note issue and note redemption (destruction) by members of the banking sector. (Copyright: Elsevier)

Technical Details

RePEc Handle
repec:red:issued:v:2:y:1999:i:1:p:104-136
Journal Field
Macro
Author Count
2
Added to Database
2026-01-25