Counterfeiting, screening and government policy

• 成果类型: Article
• 署名作者: Kang, Kee-Youn
• 署名单位: Yonsei University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2017.08.002
• 发表日期: 2017
• 页码: 26-54
• 关键词: money; Counterfeiting; screening; verification; search

摘要

We construct a search theoretic model of money in which counterfeit money can be produced at a cost, but agents can screen for fake money, also at a cost. Counterfeiting can occur in equilibrium when both costs and the inflation rate are sufficiently low. Optimal monetary policy is the Friedman rule. However, the rationale for the Friedman rule in an economy with circulation of counterfeit money differs from the conventional mechanism that holds in the model when counterfeiting does not occur. We also study optimal anti-counterfeiting policy that determines the counterfeiting cost and the screening cost. (C) 2017 Elsevier Inc. All rights reserved.