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01223nam a2200169Ia 4500 |
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10.1016-j.jedc.2019.04.001 |
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220511s2019 CNT 000 0 und d |
| 020 |
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|a 01651889 (ISSN)
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| 245 |
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|a On the benefits of currency reform
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|b Elsevier B.V.
|c 2019
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| 856 |
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|z View Fulltext in Publisher
|u https://doi.org/10.1016/j.jedc.2019.04.001
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|a Money allows agents to achieve allocations that are not possible without it. However, currency in most economies is a uniform object, and there may be incentive compatible allocations that cannot be implemented with a uniform currency. We show that currency reform, i.e., changing the monetary base by replacing one currency with another, is a powerful tool that can enable a monetary authority to achieve a desired allocation. Our monetary mechanism with currency reform is anonymous and features a nonlinear exchange rate between currencies and a monotone value of money. These results help interpret the characteristics of currency reforms observed in practice. © 2019 Elsevier B.V.
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|a Currency reform
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|a Monetary models
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| 700 |
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|a Krishna, R.V.
|e author
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|a Leukhina, O.
|e author
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| 773 |
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|t Journal of Economic Dynamics and Control
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