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The international diffusion of an innovation: The spread of decimal currency

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  • Tschoegl, Adrian E.

Abstract

This paper argues that decimalization of currency diffused as a consequence of all three forms of isomorphism: normative, coercive, and mimetic. Furthermore, it is ambiguous as to whether the normative isomorphism was well founded. The patterns of denominations show variety by country as a consequence of a number of factors, including cultural ones. These patterns tend to follow a powers-of-two (binary) principle for smaller denominations and a purer decimal principle for larger denominations, reflecting their utility for cash transactions and for store-of-value functions, respectively.

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  • Tschoegl, Adrian E., 2010. "The international diffusion of an innovation: The spread of decimal currency," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(1), pages 100-109, January.
    • Handle: RePEc:eee:soceco:v:39:y:2010:i:1:p:100-109
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    Cited by:

    1. Mushin, Jerry, 2010. "New decimal currencies' relationships with their predecessors," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(2), pages 316-318, April.

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