Can currency competition work?

A-Tier
Journal: Journal of Monetary Economics
Year: 2019
Volume: 106
Issue: C
Pages: 1-15

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

Can competition among privately-issued fiat currencies work? Only sometimes and partially. To show this, we build a model of competition among privately-issued fiat currencies. A purely private arrangement fails to implement an efficient allocation, even though it can deliver price stability under certain technological conditions. Although currency competition creates problems for monetary policy, it is possible to design a policy rule that uniquely implements an efficient allocation.

Technical Details

RePEc Handle
repec:eee:moneco:v:106:y:2019:i:c:p:1-15
Journal Field
Macro
Author Count
2
Added to Database
2026-01-25