| Tekijä: | Lotz, S. Bocheteau, G. |
| Otsikko: | On the launching of a new currency |
| Lehti: | Journal of Money, Credit and Banking
2002 : AUG, VOL. 34:3, part 1, p. 563-588 |
| Asiasana: | Monetary policy Banking Currency |
| Kieli: | eng |
| Tiivistelmä: | The authors study the appropriate way of launching a new fiat currency within a dual currency search- theoretic framework. They demonstrate that legal tender laws may not be sufficient to guarantee the acceptability of the new currency, and that the old currency may continue to circulate if the enforcement power of legal tender laws is weak, and the fractation of individuals endowed with the new currency is to low. A network externality may generate inefficiencies in the decision to switch to the new currency. |
SCIMA