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Money and payments: a modern perspective

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  • Holthausen, Cornelia
  • Monnet, Cyril

Abstract

The role of money in society has been a controversial topic in economic theory over many years. Particular attention has been devoted to the analysis whether there should be competition in the supply of money, or whether this is best left to a governmental agency. This paper reviews the theoretical literature on these issues. It also gives an overview over some episodes of free banking where banks could issue currency themselves. Finally, we highlight several aspects in which today we have competition between issuers of money, namely in the international context, with electronic money, and in large value payments systems. JEL Classification: E40, E41, N10

Suggested Citation

  • Holthausen, Cornelia & Monnet, Cyril, 2003. "Money and payments: a modern perspective," Working Paper Series 245, European Central Bank.
  • Handle: RePEc:ecb:ecbwps:2003245
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    File URL: https://www.ecb.europa.eu//pub/pdf/scpwps/ecbwp245.pdf
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    References listed on IDEAS

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    Cited by:

    1. C. Sardoni, 2006. "Why Central Banks (and Money) Rule the Roost," Economics Working Paper Archive wp_457, Levy Economics Institute.

    More about this item

    Keywords

    electronic money; free banking; money; payment systems; private money;

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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