IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v69y2024ipbs154461232401290x.html
   My bibliography  Save this article

Modeling analysis framework for metallic currency system

Author

Listed:
  • Lu, Bofan
  • Lan, RiXu
  • Chen, Chuanqi
  • Zhang, Guokun

Abstract

Small coins, large coins, and ingots circulated in parallel in the metallic currency system, and they were sorted by different mechanisms based on the transaction value of each form. This is the first attempt to model their boundaries. We construct a model of the market mechanism of the mint which derives two models to achieve our goal. The first model derived is a supply-demand model of small coins that determines the demarcation between small coins and large coins, and the second is a game model whose equilibrium solution determines the dividing line between large coins and ingots.

Suggested Citation

  • Lu, Bofan & Lan, RiXu & Chen, Chuanqi & Zhang, Guokun, 2024. "Modeling analysis framework for metallic currency system," Finance Research Letters, Elsevier, vol. 69(PB).
  • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s154461232401290x
    DOI: 10.1016/j.frl.2024.106261
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S154461232401290X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.frl.2024.106261?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Carlo M. Cipolla, 1963. "Currency Depreciation in Medieval Europe," Economic History Review, Economic History Society, vol. 15(3), pages 413-422, April.
    2. Jacques Melitz, 2017. "A model of the beginnings of coinage in antiquity," European Review of Economic History, European Historical Economics Society, vol. 21(1), pages 83-103.
    3. Mark S. Peacock, 2006. "The origins of money in Ancient Greece: the political economy of coinage and exchange," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 30(4), pages 637-650, July.
    4. Redish, Angela & Weber, Warren E., 2011. "Coin Sizes And Payments In Commodity Money Systems," Macroeconomic Dynamics, Cambridge University Press, vol. 15(S1), pages 62-82, April.
    5. Wallace, Neil, 2003. "Modeling Small Change: A Review Article," Working Papers 9-03-3, Pennsylvania State University, Department of Economics.
    6. Young Sik Kim & Manjong Lee, 2012. "Return on Commodity Money, Small Change Problems, and Fiat Money," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44, pages 533-549, March.
    7. Jin, Gu & Zhu, Tao, 2019. "Debasements and Small Coins: An Untold Story of Commodity Money," MPRA Paper 93057, University Library of Munich, Germany.
    8. Metcalf, William, 2012. "The Oxford Handbook of Greek and Roman Coinage," OUP Catalogue, Oxford University Press, number 9780195305746.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Allan Hernandez-Chanto, 2020. "The extrinsic value of low-denomination money holdings," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 8(2), pages 263-280, October.
    2. Angela Redish & Warren E. Weber, 2011. "A model of commodity money with minting and melting," Staff Report 460, Federal Reserve Bank of Minneapolis.
    3. Eric Tymoigne, 2017. "On the Centrality of Redemption: Linking the State and Credit Theories of Money through a Financial Approach to Money," Economics Working Paper Archive wp_890, Levy Economics Institute.
    4. Jin, Gu & Zhu, Tao, 2019. "Debasements and Small Coins: An Untold Story of Commodity Money," MPRA Paper 93057, University Library of Munich, Germany.
    5. Young Sik Kim & Manjong Lee, 2012. "Return on Commodity Money, Small Change Problems, and Fiat Money," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44(2‐3), pages 533-549, March.
    6. Lothian, James R., 2002. "The internationalization of money and finance and the globalization of financial markets," Journal of International Money and Finance, Elsevier, vol. 21(6), pages 699-724, November.
    7. Karaman, K. Kıvanç & Pamuk, Şevket & Yıldırım-Karaman, Seçil, 2020. "Money and monetary stability in Europe, 1300–1914," Journal of Monetary Economics, Elsevier, vol. 115(C), pages 279-300.
    8. Kaushik Bhattacharya, 2011. "Demand and Supply of Currencies of Small Denominations: A Theoretical Framework," Journal of Quantitative Economics, The Indian Econometric Society, vol. 9(2), pages 123-139, July.
    9. Alla Semenova & L. Randall Wray, 2015. "The Rise of Money and Class Society: The Contributions of John F. Henry," Economics Working Paper Archive wp_832, Levy Economics Institute.
    10. Huberto M. Ennis, 2003. "Shortages of small change in early Argentina," Working Paper 03-12, Federal Reserve Bank of Richmond.
    11. Hull, Isaiah & Sattath, Or, 2021. "Revisiting the Properties of Money," Working Paper Series 406, Sveriges Riksbank (Central Bank of Sweden).
    12. Von dem Berge, Lukas, 2014. "Parallel currencies in historical perspective," CAWM Discussion Papers 75, University of Münster, Münster Center for Economic Policy (MEP).
    13. John H. Munro, 2009. "Coinage and Monetary Policies in Burgundian Flanders during the late-medieval 'Bullion Famines',. 1384 - 1482," Working Papers tecipa-361, University of Toronto, Department of Economics.
    14. repec:cte:whrepe:wh030905 is not listed on IDEAS
    15. Xavier Cuadras‐Morató, 2009. "Circulation Of Private Notes During A Currency Shortage," Manchester School, University of Manchester, vol. 77(4), pages 461-478, July.
    16. Farley Grubb, 2012. "Chronic Specie Scarcity and Efficient Barter: The Problem of Maintaining an Outside Money Supply in British Colonial America ," Working Papers 12-08, University of Delaware, Department of Economics.
    17. Gerald P. Dwyer & James R. Lothian, 2003. "The economics of international monies," FRB Atlanta Working Paper 2003-37, Federal Reserve Bank of Atlanta.
    18. Stéphane Martin, 2015. "Monetary circulation and archaeological data. The contribution of stratigraphy to monetary history [Circulation de la monnaie et données archéologiques. L’apport de la stratigraphie à l’histoire mo," Post-Print hal-01237170, HAL.
    19. Williamson, Stephen & Wright, Randall, 2010. "New Monetarist Economics: Models," Handbook of Monetary Economics, in: Benjamin M. Friedman & Michael Woodford (ed.), Handbook of Monetary Economics, edition 1, volume 3, chapter 2, pages 25-96, Elsevier.
    20. L. Randall Wray, 2012. "Introduction to an Alternative History of Money," Economics Working Paper Archive wp_717, Levy Economics Institute.
    21. Drew M. Ross, 2016. "Determining the Use of Mathematical Geometry in the Ancient Greek Method of Design," The Mathematical Intelligencer, Springer, vol. 38(2), pages 17-28, June.

    More about this item

    Keywords

    Commodity money; Small change; Ingot as money; The mint; Transaction cost;
    All these keywords.

    JEL classification:

    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s154461232401290x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.