Private fiat money with many suppliers

Taub, B. (1985) Private fiat money with many suppliers. Journal of Monetary Economics, 16(2), pp. 195-208. (doi: 10.1016/0304-3932(85)90030-3)

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A dynamic rational expectations model of money is used to investigate whether a Nash equilibrium of many firms, each supplying its own brand-name currency, will optimally deflate their currencies in Friedman's (1969) sense. The optimal deflation does arise under an open loop dynamic structure, but the equilibrium breaks down under a more realistic feedback control structure.

Item Type:Articles
Additional Information:Reprinted in "Free Banking, Volume III: Modern Theory and Policy", ed by L.H. White. Edward Elgar, 1993
Glasgow Author(s) Enlighten ID:Taub, Professor Bart
Authors: Taub, B.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Journal of Monetary Economics

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