For one variable–supply currency in isolation, player’s Cobb–Douglas utility depends on the current supply divided by initial supply, multiplied inverse of accumulative inflation/deflation. With equal weight assigned to both factors, money printing outweighs inflation, and withdrawal deflation. The study design is analyze how competition between fixed–supply impacts choice currency. Applying 19...

The aim of this paper is to examine indications for a common currency system on the Internet for spontaneous transactions. First the framework for such a currency system and the theoretical background on common currencies are discussed. Examples of common currencies already in use are evaluated according to a set of criteria developed by the authors. Furthermore the theoretical ideas and the in...

Analysis of the currency networks is not easy as the transactions are not centralized but rather take place over a large number of banks and commercial entities. Digital crypto currencies, however, require a public ledger to work and provide an opportunity for analysis of currency transactions. A crypto currency is a medium of exchange using cryptography to secure the transactions and to contro...

We introduce iOwe, a deferred compensation scheme that can be used in a broad range of decentralized systems. iOwe is reminiscent of a currency scheme backed by a precious commodity: network resources. iOwe does not require a central authority, proofs of work, continuous connectivity to currency issuers, or trusted storage. Instead, in iOwe, any principal may issue their own currency, in any am...

In order to better emulate models with divisible money, we enrich existing random-matching models of international currencies with indivisible monies by introducing randomized trades. The concept of equilibrium is the pairwise core in meetings. We show that there exist equilibrium outcomes in which home and foreign currency play distinct roles. Among these are outcomes with higher observed pric...

This chapter was originally published in The Evidence and Impact of Financial Globalization published by Elsevier, and the attached copy is provided by Elsevier for the author's benefit and for the benefit of the author's institution, for noncommercial research and educational use including without limitation use in instruction at your institution, sending it to specific colleagues who you know...