Money Is an Experience Good: Competition and Trust in the Private Provision of Money
نویسندگان
چکیده
We study the interplay between competition and trust as efficiencyenhancing mechanims in the private provision of money. With commitment, trust is automatically achieved and competition ensures efficiency. Without commitment, competition plays no role. Trust does play a role but requires a bound on efficiency. Stationary inflation must be non-negative and, therefore, the Friedman rule cannot be achieved. The quality of money can only be observed after its purchasing capacity is realized. In that sense money is an experience good. JEL classification: E40; E50; E58; E60
منابع مشابه
Mwp 2011/06 Max Weber Programme Money Is an Experience Good: Competition and Trust in the Private Provision of Money
We study the interplay between competition and trust as efficiency-enhancing mechanisms in the private provision of money. With commitment, trust is automatically achieved and competition ensures efficiency. Without commitment, competition plays no role. Trust does play a role but requires a bound on efficiency. Stationary inflation must be non-negative and, therefore, the Friedman rule cannot ...
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We study the interplay between competition and trust as efficiencyenhancing mechanims in the private provision of money. With commitment, trust is automatically achieved and competition ensures efficiency. Without commitment, competition plays no role. Trust does play a role but requires a bound on efficiency. Stationary inflation must be non-negative and, therefore, the Friedman rule cannot be...
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