Corpus ID: 232168897

On the marginal utility of fiat money: insurmountable circularity or not?

  title={On the marginal utility of fiat money: insurmountable circularity or not?},
  author={M. Reiss},
The question of how a pure fiat currency is enforced and comes to have a non-zero value has been much debated (Selgin, 1994). 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… Expand

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