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Legal Tender

  • Dror Goldberg

    ()

    (Department of Economics, Bar Ilan University)

The legal foundation of the monetary system is the law of legal tender. The “legal tender” concept is used in models to describe almost anything except for what it really means in actual laws. Such errors prevent an accurate evaluation of the importance of this legal status. This note explains in simple terms what “legal tender” really means.

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File URL: http://www.biu.ac.il/soc/ec/wp/2009-04.pdf
File Function: Working paper
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Paper provided by Bar-Ilan University, Department of Economics in its series Working Papers with number 2009-4.

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Date of creation: Apr 2009
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Handle: RePEc:biu:wpaper:2009-4
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