IDEAS home Printed from https://ideas.repec.org/a/mcb/jmoncb/v25y1993i2p214-21.html
   My bibliography  Save this article

Inflation-Proof Currency? The Feasibility of Variable Commodity Standards

Author

Listed:
  • Schnadt, Norbert
  • Whittaker, John

Abstract

Under a proposal by Robert L. Greenfield and Leland B. Yeager (1989), the value of currency is tied to the value of a defined basket of goods by indirect convertibility: the note-issuing bank offers to redeem its currency for sufficient gold to buy the basket in the market. The authors find that this arrangement cannot be applied to the currency that is the medium of account for quoting prices of goods and that it would imply unlimited change in the gold price when the price of the basket deviates from unity. A feedback rule with slower price adjustment may, however, be feasible. Copyright 1993 by Ohio State University Press.

Suggested Citation

  • Schnadt, Norbert & Whittaker, John, 1993. "Inflation-Proof Currency? The Feasibility of Variable Commodity Standards," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 25(2), pages 214-221, May.
    • Handle: RePEc:mcb:jmoncb:v:25:y:1993:i:2:p:214-21
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0022-2879%28199305%2925%3A2%3C214%3AICTFOV%3E2.0.CO%3B2-J&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

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

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. J. S. Ferris & J. A. Galbraith, 2003. "Indirect convertibility as a money rule for inflation targeting," Applied Financial Economics, Taylor & Francis Journals, vol. 13(10), pages 753-761.
    2. Bennett T. McCallum, 2003. "Monetary Policy in Economies with Little or No Money," NBER Working Papers 9838, National Bureau of Economic Research, Inc.
    3. David Cronin, 2017. "Indirect Convertibility, Equity-Based Banking and Financial Stability," Economic Affairs, Wiley Blackwell, vol. 37(3), pages 357-364, October.
    4. James A. Dorn, 2010. "Editor's Note," Cato Journal, Cato Journal, Cato Institute, vol. 30(3), Fall.
    5. J. Stephen Ferris & J.A. Galbraith, 2000. "Indirect Convertibility, Inflation Targeting, and Monetary Policy Rules," Carleton Economic Papers 00-10, Carleton University, Department of Economics.
    6. Sumner Scott, 2006. "Let a Thousand Models Bloom: The Advantages of Making the FOMC a Truly 'Open Market'," The B.E. Journal of Macroeconomics, De Gruyter, vol. 6(1), pages 1-27, October.
    7. repec:dau:papers:123456789/11496 is not listed on IDEAS
    8. Colin Rogers & Thomas K. Rymes, 1998. "Indirect Convertibility and Quasi-Futures Contracts: Two Non-Operational Schemes for Automatic Stabilisation of the Price Level?," School of Economics and Public Policy Working Papers 1998-17, University of Adelaide, School of Economics and Public Policy.

    More about this item

    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:mcb:jmoncb:v:25:y:1993:i:2:p:214-21. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Wiley-Blackwell Digital Licensing or Christopher F. Baum (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879 .

    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.