Private and public circulating liabilities

• 成果类型: Article
• 署名作者: Azariadis, AE; Bullard, J; Smith, BD
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - St. Louis; University of Texas System; University of Texas Austin; University of California System; University of California Los Angeles
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• 发表日期: 2001
• 页码: 59-116
• 关键词: flat money; Private money; electronic cash; Monetary theory; endogenous volatility

摘要

Legal and technological changes have made private banknote issue, or its electronic equivalent, possible, We construct a model where private liabilities circulate, either by themselves or alongside outside money. We provide results on existence and multiplicity of equilibria and characterize dynamics near steady states, Our results support Friedman in that circulating private liabilities are associated with endogenous volatility. But implementing Friedman's advice (the government should ban private currency substitutes) causes significant inefficiency. The proposal of Hayek (that the government should leave currency creation to the market) also is often constrained-suboptimal. Both public and private circulating liabilities are required for optimality. (C) 2001 Academic Press.