Commodity and token monies

Thomas J. Sargent

doi:10.1111/ecoj.12587

Commodity and token monies

Thomas J. Sargent

Research output: Contribution to journal › Article › peer-review

Abstract

A government defines a dollar as a list of quantities of one or more precious metals. If issued in limited amounts, token money is a perfect substitute for precious metal money. Atemporal equilibrium conditions determine how quantities of precious metals and token monies affect an equilibrium price level. Within limits, a government can peg the relative price of two precious metals, confirming Fisher’s (1911) response to a classic criticism of bimetallism. Monometallism dominates bimetallism according to a natural welfare criterion.

Original language	English (US)
Pages (from-to)	1457-1476
Number of pages	20
Journal	Economic Journal
Volume	129
Issue number	619
DOIs	https://doi.org/10.1111/ecoj.12587
State	Published - Apr 1 2019

ASJC Scopus subject areas

Economics and Econometrics

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10.1111/ecoj.12587

Cite this

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Commodity and token monies

Abstract

ASJC Scopus subject areas

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