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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
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    References listed on IDEAS

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    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

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