Money is an Experience Good: Competition and Trust in the Private Provision of Money

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Show simple item record MARIMON, Ramon NICOLINI, Juan Pablo TELES, Pedro 2011-06-07T09:39:13Z 2011-06-07T09:39:13Z 2011
dc.identifier.issn 1725-6704
dc.description.abstract We study the interplay between competition and trust as efficiency-enhancingmechanims in the private provision of money. With commitment, trust is automatically achieved and competition ensures efficiency. Without commitment, competition plays no role. Trust does play a role but requires a bound on efficiency. Stationary inflation must be non-negative and, therefore, the Friedman rule cannot be achieved. The quality of money can only be observed after its purchasing capacity is realized. In that sense money is an experience good. en
dc.format.mimetype application/pdf
dc.language.iso en en
dc.relation.ispartofseries EUI ECO en
dc.relation.ispartofseries 2011/24 en
dc.rights info:eu-repo/semantics/openAccess
dc.subject Currency competition en
dc.subject Trust en
dc.subject Inflation en
dc.subject Sustainable Equilibrium en
dc.subject Experience goods en
dc.subject E40 en
dc.subject E50 en
dc.subject E58 en
dc.subject E60 en
dc.title Money is an Experience Good: Competition and Trust in the Private Provision of Money en
dc.type Working Paper en
dc.neeo.contributor MARIMON|Ramon|aut|EUI70009
dc.neeo.contributor NICOLINI|Juan Pablo|aut|
dc.neeo.contributor TELES|Pedro|aut|
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