Title: An oligopoly model of free banking - theory and tests
Authors: Baye, Mr ×
De Grauwe, Paul
Devries, Cg #
Issue Date: 1993
Publisher: Kluwer academic publ
Series Title: Economist vol:141 issue:4 pages:497-514
Abstract: The paper demonstrates that in an environment of free banking where some agents have imperfect information regarding the circulation and debasement rates of alternative money suppliers, the equilibrium supply of money involves mixed strategies. It follows that the circulation and debasement rates are intrinsically stochastic, but that their averages are below the rates set by a monopoly bank. Empirical tests reveal that these predictions are consistent with the free banking era of the United States. The paper is also relevant for the discussion about the future monetary union in the EC.
ISSN: 0013-063X
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Center of International Economics, Leuven
× corresponding author
# (joint) last author

Files in This Item:

There are no files associated with this item.

Request a copy


All items in Lirias are protected by copyright, with all rights reserved.

© Web of science