IDEAS home Printed from https://ideas.repec.org/p/hhs/hastef/0048.html
   My bibliography  Save this paper

On the Spontaneous Freezing of the Monetary Base

Author

Listed:
  • Hortlund, Per

Abstract

The paper explores the question of whether markets under laissez-faire will be able to insulate an economy from bad government money. Some recent proposals favour freezing the monetary base, by abandoning central bank operations. This requires active participation by the monetary authorities, however. On the other hand, the network externality makes a switch from central-bank currency difficult. The paper investigates how the dilemma could be overcome and the monetary base be spontaneously frozen, by a process where commercial banks issue liabilities that are redeemable only into central bank notes issued before a certain date.

Suggested Citation

  • Hortlund, Per, 1995. "On the Spontaneous Freezing of the Monetary Base," SSE/EFI Working Paper Series in Economics and Finance 48, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0048
    as

    Download full text from publisher

    File URL: http://swopec.hhs.se/hastef/papers/hastef0048.ps
    Download Restriction: no
    File URL: http://swopec.hhs.se/hastef/papers/hastef0048.ps.zip
    Download Restriction: no
    File URL: http://swopec.hhs.se/hastef/papers/hastef0048.pdf
    Download Restriction: no
    File URL: http://swopec.hhs.se/hastef/papers/hastef0048.pdf.zip
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Free banking; monetary evolution; currency competition;
    All these keywords.

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • G2 - Financial Economics - - Financial Institutions and Services

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:hastef:0048. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Helena Lundin (email available below). General contact details of provider: https://edirc.repec.org/data/erhhsse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.