The big problem of small change
Western Europe was plagued with currency shortages from the 14th century, at which a 'standard formula' had been devised to cure the problem. We use a cash-in-advance model of commodity money to define a currency shortage, show that they could develop and persist under commodity money regime, and analyze the role played by each ingredient in the standard formula. A companion paper documents the evolution of monetary theory, monetary experiments and minting technology over the course of six hundred years.
|Date of creation:||1997|
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- Diaz-Gimenez, Javier & Prescott, Edward C. & Fitzgerald, Terry & Alvarez, Fernando, 1992.
"Banking in computable general equilibrium economies,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 16(3-4), pages 533-559.
- Javier Diaz-Gimenez & Edward C. Prescott & Terry J. Fitzgerald & Fernando Alvarez, 1992. "Banking in computable general equilibrium economies," Staff Report 153, Federal Reserve Bank of Minneapolis.
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"An Exploration in the Theory of Exchange-Rate Regimes,"
3445091, Harvard University Department of Economics.
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- repec:tpr:qjecon:v:96:y:1981:i:2:p:207-22 is not listed on IDEAS
- Redish, Angela, 1990. "The Evolution of the Gold Standard in England," The Journal of Economic History, Cambridge University Press, vol. 50(04), pages 789-805, December.
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