The Big Problem of Small Change

@inproceedings{Sargent2002TheBP,
  title={The Big Problem of Small Change},
  author={Thomas J. Sargent and François R. Velde},
  year={2002}
}
The medieval money supply mechanism implemented a commodity standard throughout the denomination structure by imposing mint and melt points for each coin. Mints stood ready to sell (but not to buy) coins for metal. Seigniorage and brassage fees determined the spreads between mint points and melt points for each coin. Because it was cheaper to make a large coin than a smaller one, there were difficulties in aligning the mint-melt points for various coins, and these exposed the system to… 

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