Competition of Currencies: An Alternative to Legal Tender

Gawthorpe, Kateřina

doi:10.18267/j.pep.604

Cited by 5 publications

(3 citation statements)

References 25 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Another reason that can be identified for implementing a CSMS is the possibility it provides to increase the supply of money in a territory, through the coexistence of two or more coins, without generating inflationary effects, as demonstrated by the empirical research of Gawthorpe [83]. As noted in the previous paragraph, the existence of a CSMS in a territory increases potential local economic activity [73].…”

Section: Purpose Of a Complementary Monetary Systemmentioning

confidence: 98%

Design of Strategies for the Implementation and Management of a Complementary Monetary System Using the SWOT-AHP Methodology

et al. 2020

View full text Add to dashboard Cite

The objective of this research is to contribute to the scientific debate on “complementary monetary systems” (CMSs), what strategies may be the best for allowing the implementation of a CMS in a territory and that optimise the potential that it seems to have to strengthen processes of sustainable local development and urban resilience. For this, the Strengths, Weaknesses, Opportunities and Threats-Analytic Hierarchy Process methodology (SWOT-AHP) has been used, which has allowed us to identify four strategies: (1) build a social, economic and political consensus, (2) create a community observatory for “complementary social monetary systems” (CSMSs), (3) define communication tools for raising awareness and education in ethical finance and (4) promote the alignment of the CSMS with sustainable local development strategies. These strategies have been formulated so that that they can be implemented by any entity, public or private, and for any of the types of CMS that may be part of a CSMS.

show abstract

Section: Purpose Of a Complementary Monetary Systemmentioning

confidence: 98%

Design of Strategies for the Implementation and Management of a Complementary Monetary System Using the SWOT-AHP Methodology

et al. 2020

View full text Add to dashboard Cite

show abstract

“…Dollarization can be reduced by adopting policies aimed at reducing currency risk and enhancing the trading environment. Gawthorpe (2017) adopts the money in utility function approach to explore the competition between a fiat currency and alternative currencies. They show that competition may cause a lower inflation rate compared with only one fiat currency.…”

Section: Literaturementioning

confidence: 99%

“…The literature commonly analyzes the competition between currencies and focuses on different currencies' features, i.e., network effects and switching costs (Dowd and Greenaway 1993), safety, risk, and trade frictions (Camera et al 2004), switching costs, inflation and network externalities (Gawthorpe 2017), six utility features of a national currency and a global currency (Wang and Hausken 2021), etc. This is one of the first articles that focuses on two essential features of currencies, which are supply and inflation/deflation.…”

Section: Literature Summary and Additions To The Literature Gapmentioning

confidence: 99%

Competition between Variable–Supply and Fixed–Supply Currencies

Wang

Hausken

2022

Economies

View full text Add to dashboard Cite

For one variable–supply currency in isolation, one player’s Cobb–Douglas utility depends on the current supply divided by the initial supply, multiplied by the inverse of the accumulative inflation/deflation. With equal weight assigned to both factors, money printing outweighs inflation, and money withdrawal outweighs deflation. The study design is to analyze how competition between one variable–supply and one fixed–supply currency impacts the player’s choice of currency. Applying the 1959–2021 US M2 money supply data and the 1635–2021 US inflation data, the player’s utility increases over time when assigning high weight to money printing/withdrawal and increases less or decreases overall when assigning high weight to inflation/deflation. With different player support for the two currencies, depending on each currency’s backing, convenience, confidentiality, transaction efficiency, financial stability, and security, replicator dynamics is used to determine the player’s volume fraction of transactions in each currency. Low, high, increasing, and decreasing support of a currency are analyzed. Each fraction may increase, decrease, be inverse U–shaped, U–shaped, and approach low or high levels over time. For example, high weight assigned to money printing may cause the player to eventually prefer the variable–supply currency unless the player supports the fixed–supply currency highly and increasingly.

show abstract

Hard money and fiat money in an inflationary world

Wang,

Hausken

2024

Research in International Business and Finance

View full text Add to dashboard Cite

Competition of Currencies: An Alternative to Legal Tender

Cited by 5 publications

References 25 publications

Design of Strategies for the Implementation and Management of a Complementary Monetary System Using the SWOT-AHP Methodology

Design of Strategies for the Implementation and Management of a Complementary Monetary System Using the SWOT-AHP Methodology

Competition between Variable–Supply and Fixed–Supply Currencies

Hard money and fiat money in an inflationary world

Contact Info

Product

Resources

About