Information, learning, and the stability of fiat money

• 成果类型: Article
• 署名作者: Araujo, Luis; Camargo, Braz
• 署名单位: Michigan State University; FUCAPE Business School; Western University (University of Western Ontario)
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2005.07.017
• 发表日期: 2006
• 页码: 1571-1591
• 关键词: Monetary stability; endogenous money; decentralized trade; learning

摘要

We analyze the stability of monetary regimes in an economy where fiat money is endogenously created by the government, information about its value is imperfect, and learning is decentralized. We show that monetary stability depends crucially on the speed of information transmission in the economy. Our model generates a dynamic on the acceptability of flat money that resembles historical accounts of the rise and eventual collapse of overissued paper money. It also provides an explanation of the fact that, despite its obvious advantages, the widespread use of fiat money is only a recent development. (c) 2006 Elsevier B.V. All rights reserved.