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- W3124453219 abstract "Our model is a variant of the cash-in-advance model. Goods must be purchased in the seller’s currency, but currency may be traded before shopping at a cost. This cost is a measure of substitutability. The model is applied to seignorage taxation. We show that optimal money growth is positive and increasing in substitutability if and only if first- and second-period consumption are gross substitutes. If governments act independently, money growth is suboptimally low if currencies are sufficiently substitutable and too high otherwise." @default.
- W3124453219 created "2021-02-01" @default.
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- W3124453219 date "1993-10-01" @default.
- W3124453219 modified "2023-09-27" @default.
- W3124453219 title "Government Finance in a Model of Currency Substitution" @default.
- W3124453219 hasPublicationYear "1993" @default.
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