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• W2020893185 abstract "We construct a search‐theoretic model of commodity money where a penny is an indivisible silver coin that can be either melted into a silver bar yielding a positive return or used as a medium of exchange. In equilibria where the rate of return on silver is sufficiently high, small change problems arise in the form of too‐much‐trade inefficiency because of a too‐high value of a penny and no‐trade inefficiency because of a shortage of coins in circulation. In the fiat money system, however, trades are not affected at all by the rate of return on silver and the value of a penny is determined by its medium‐of‐exchange role without incurring the loss in efficiency due to small change problems." @default.
• W2020893185 created "2016-06-24" @default.
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• W2020893185 date "2012-03-01" @default.
• W2020893185 modified "2023-09-24" @default.
• W2020893185 title "Return on Commodity Money, Small Change Problems, and Fiat Money" @default.
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• W2020893185 doi "https://doi.org/10.1111/j.1538-4616.2012.00500.x" @default.
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