• Print
  • Email
  • Share

Working Paper, No. 1997-08, 1997
The Big Problem with Small Change

Western Europe was plagued with currency shortages from the 14th to the 19th century, at which time a standard formula had been devised to cure the problem. The authors use a cash in-advance model of commodity money to define a currency shortage, show that they could develop and persist under a commodity money regime and analyze the role played by each ingredient in the standard formula. A companion paper documents the evolution of monetary theory, monetary experiments and minting technology over the course of six hundred years.



Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, Illinois 60604-1413, USA. Tel. (312) 322-5322

Copyright © 2016. All rights reserved.

Please review our Privacy Policy | Legal Notices