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A Model of Small Change Shortages

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  • Warren E. Weber

    (Federal Reserve Bank of Minneapolis)

  • Angela Redish

    (University of British Columbia)

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    Abstract

    the smaller coin is used to make change in some transactions, and shortages of small coins hurts the poor. The predictions of the model are evaluated against England's experience with silver and gold coins.

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    File URL: http://www.economicdynamics.org/meetpapers/2008/paper_677.pdf
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    Bibliographic Info

    Paper provided by Society for Economic Dynamics in its series 2008 Meeting Papers with number 677.

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    Date of creation: 2008
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    Handle: RePEc:red:sed008:677

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    1. Wallace, Neil & Zhu, Tao, 2007. "Float on a note," Journal of Monetary Economics, Elsevier, Elsevier, vol. 54(2), pages 229-246, March.
    2. Burdett, Kenneth & Trejos, Alberto & Wright, Randall, 2001. "Cigarette Money," Journal of Economic Theory, Elsevier, Elsevier, vol. 99(1-2), pages 117-142, July.
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