Money Shortages and Complementary Currencies in Small Local Economies

• 成果类型: Article; Early Access
• 署名作者: Frasser, Cristian; Lebeau, Lucie
• 署名单位: Universidad del Valle; Wellesley College
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.70085
• 发表日期: 2026
• 关键词: asset prices; monetary-policy; liquidity; MODEL

摘要

This paper rationalizes the adoption of a complementary currency (CC) in a small, local economy. A local money shortage occurs when the supply of official currency, determined endogenously by trade with a larger economy, falls short of the liquidity needed for first-best activity. A CC then supplements liquidity and boosts local trade at the expense of external trade; the welfare-maximizing CC supply is strictly positive. A calibration to coca-growing villages in Colombia, where coca-base circulates as a local CC, suggests its liquidity role raises local trade by roughly a third.