The literature on media of exchange has a standard example of indirect exchange dominated by direct exchange. This case occurs under the assumption of additive transaction costs. We show under what conditions commodity money might emerge and when it will be dominated by fiat miney in this step.
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Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number
1996-11.
Find related papers by JEL classification: D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General E49 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Other