A hybrid fiat-commodity monetary system
By: Neil Wallace
Series: Federal Reserve Bank of Minneapolis, Research Department staff report -- #61; Staff report (Federal Reserve Bank of Minneapolis. Research Department : Online) -- 61.
Publisher: Federal Reserve Bank of Minneapolis
Published: 1980
Place of publication: Minneapolis, Minn.]
Language: eng
Format: [electronic resource] /
Subjects: Public Debts; Mathematical models; Taxation
Description: "In this paper I describe a "monetary" system in which backing is provided for the government's liabilities by way of contingent resort to taxes.  The system has some of the features of a commodity money system with a large seignorage spread between bid and ask prices.  It is studied within the context of a one-good, pure exchange model of two-period-lived overlapping generations in which, aside from various uniform boundedness assumptions, considerable diversity is allowed both within and across generations.  Two results are established: (i) the existence of at least one perfect foresight competitive equilibrium, and (ii) the Pareto optimality of any such equilibrium"--Federal Reserve Bank of Minneapolis web site.
Notes: Title from PDF file as viewed on 10/16/2007.

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