La concurrence entre monnaie interne et monnaie externe : le point de vue des deux circulations
We present a model to analyze different equilibria that exist in an economy in which agents can choose the means of payment to use in trade ; i. e., inside or outside money. Our approach departs from the usual explanation of competition as a phenomenon related to money functions (means of payment and store of value). We interpret competition from the two circulations perspective, developed by Tooke and Smith : income circulation, between entrepreneurs and workers, and capital circulation, between entrepreneurs. We claim that monetary authorities can generally assure that outside money is used in income circulation transactions regardless of workers’ choice. However, authorities cannot affect the means of payment used in equilibrium in capital circulation transactions. If half of entrepreneurs adopt inside money instead of outside money, all of them will choose the former regardless of authorities’ decisions. The distinction between ‘circulations’ is crucial to explain the equilibrium that corresponds to Tooke’s description : outside money is chosen for income circulation transactions whereas inside money (assumed to be less costly) is chosen in capital circulation.
Volume (Year): 119 (2009)
Issue (Month): 6 ()
|Contact details of provider:|| Web page: http://www.cairn.info/revue-d-economie-politique.htm|
When requesting a correction, please mention this item's handle: RePEc:cai:repdal:redp_196_0899. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.