Working Paper No. 10-29 Comment on Cavalcanti and Nosal’s “counterfeiting as Private Money in Mechanism Design”

Abstract

In this comment, I extend Cavalcanti and Nosal’s (2010) framework to include the case of perfectly divisible money and unrestricted money holdings. I show that when trade takes place in Walrasian markets, counterfeits circulate and the Friedman rule is still optimal.

Cite this paper

@inproceedings{Monnet2010WorkingPN, title={Working Paper No. 10-29 Comment on Cavalcanti and Nosal’s “counterfeiting as Private Money in Mechanism Design”}, author={Cyril Monnet}, year={2010} }