Cigarette Money

@article{Burdett2001CigaretteM,
  title={Cigarette Money},
  author={Kenneth Burdett and Alberto Trejos and Randall Wright},
  journal={J. Econ. Theory},
  year={2001},
  volume={99},
  pages={117-142}
}
We study the circumstances under which commodities emerge endogenously as media of exchange – the way cigarettes apparently did, for example, in POW camps – both when there is ...at money available and when there is not. We characterize how specialization, the degree of trading frictions, intrinsic properties of commodities, and the amount of ...at money available determine whether a commodity serves as money and its exchange value. In some equilibria, the exchange value of commodity money is… 
Smoking or trading ? On cigarette money in post WW2 Germany
Just after world war II, the German money at that time - the Reichsmark - was refused in about 50% of the transactions of consumer goods and had been replaced by barter or commodity moneys such as
Currency Competition: A Partial Vindication of Hayek
This paper establishes the existence of equilibria for environments in which outside money is issued competitively. Such equilibria are typically believed not to exist because of a classic overissue
The Economics of Payments
In this paper we provide a survey of the payment literature in a unified framework. The environment is a variant of the Lagos and Wright (2005) model of monetary exchange, where some trades occur in
Limelight on dark markets: An experimental study of liquidity and information
The goal of this paper is to study how informational frictions a ff ect asset liquidity in OTC markets in a laboratory setting. The experiments replicate an OTC market similar to the one used in
Barter, Money and Direct Search Equilibrium
Given the adoption of crypto-bartering during the 2018 financial crisis in Venezuela, a direct Internet search for bartering opportunities, or communities in Greece and Russia exploring barter
What do we call money? An appraisal of the money or non-money view
Abstract Part of the debate fueled by cryptocurrencies has revolved around the question of what we call money. This paper identifies two traditions in monetary theory that have tried to answer that
Money as tool, money as drug: The biological psychology of a strong incentive
TLDR
There are a number of phenomena that cannot be accounted for by a pure Tool Theory of money motivation; supplementing Tool Theory with a Drug Theory enables the anomalous phenomena to be explained; and the human instincts that, according to a Drug theory, money parasitizes include trading and object play.
Money and finance: An integrated approach
Many applications of search theory in monetary economics use the Shi-TrejosWright model, hereafter STW, while applications in finance use Duffie-GârleanuPederson, hereafter DGP. These approaches have
Coin Inspection Technology and Commodity Money
We develop a model of commodity money with uncertainty concerning the quality of coins and study the role played by a coin inspection and certi…cation technology in improving monetary circulation and
New Monetarist Economics: Models
...
...

References

SHOWING 1-10 OF 12 REFERENCES
On Money as a Medium of Exchange
We analyze economies in which individuals specialize in consumption and production and meet randomly over time in a way that implies that trade must be bilateral and quid pro quo. Nash equilibria in
Search, Bargaining, Money, and Prices
The goal of this paper is to extend existing search-theoretic models of fiat money, which until now have assumed that the price level is exogenous, by explicitly incorporating bilateral bargaining.
Does and Should a Commodity Medium of Exchange Have Relatively Low Storage Costs
I provide new existence and welfare results for a version of the Kiyotaki-Wright model. I construct an equilibrium where all agents use mixed strategies. Consequently, an object with a higher storage
A Search-Theoretic Approach to Monetary Economics
The essential function of money is its role as a medium of exchange. The authors formalize this idea using a search-theoretic equilibrium model of the exchange process that captures the "double
A Monetary History of the United States
Writing in the June  issue of the Economic Journal, Harry G. Johnson begins with a sentence seemingly calibrated to the scale of the book he set himself to review: “The long-awaited monetary
The Model of
TLDR
The journal publishes original research breakthroughs and guided publication policies to optimize the impact, dissemination, visibility and range of the publications to the global research community.
The Economic Organization of a P.O.W
  • 1945
The Economic Organisation of a P.O.W. Camp
AFTER allowance has been made for abnormal circumstances, the social institutions, ideas and habits of groups in the outside world are to be found reflected in a Prisoner of War Camp. It is an
The Economic Organization of a P
  • Economica
  • 1945
Monies in Societies
...
...