Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
967177 | Journal of Monetary Economics | 2012 | 11 Pages |
Abstract
⺠We study the interaction between competition and trust in the private provision of money. ⺠With commitment, competition ensures efficiency, for any substitutability across currencies. ⺠Without commitment, there is a bound on efficiency, corresponding to non-negative inflation. ⺠And competition plays no role in enhancing efficiency. ⺠We discuss the analogy between competition in currencies and competition in experience goods.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Ramon Marimon, Juan Pablo Nicolini, Pedro Teles,