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

dc.contributor.author	MARIMON, Ramon
dc.contributor.author	NICOLINI, Juan Pablo
dc.contributor.author	TELES, Pedro
dc.date.accessioned	2011-06-07T09:39:13Z
dc.date.available	2011-06-07T09:39:13Z
dc.date.issued	2011-01-01
dc.identifier.issn	1725-6704
dc.identifier.uri	http://hdl.handle.net/1814/17714
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.language.iso	en	en
dc.relation.ispartofseries	EUI ECO	en
dc.relation.ispartofseries	2011/24	en
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\|