  The question of how a pure fiat currency is enforced and comes to have a
non-zero value has been much debated \cite{10.2307/2077948}. What is less often
addressed is, in the case where the enforcement is taken for granted and we ask
what value (in terms of goods and services) the currency will end up taking.
Establishing a decentralised mechanism for price formation has proven a
challenge for economists: "Since no decentralized out-of-equilibrium adjustment
mechanism has been discovered, we currently have no acceptable dynamical model
of the Walrasian system" (Gintis 2006). In his paper, Gintis put forward a
model for price discovery based on the evolution of the model's agents, i.e.
"poorly performing agents dying and being replaced by copies of the well
performing agents." It seems improbable that this mechanism is the driving
force behind price discovery in the real world. This paper proposes a more
realistic mechanism and presents results from a corresponding agent based
model.
