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Of gold and paper money

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  • Chadha, Jagjit S.

Abstract

We consider the role of money as a means of payment, store of value and medium of exchange. I outline a number of quantitative and qualitative experiences of monetary management. Successful regimes have sprung up in a variety of surprising places, and been sustained with state (centralised) interventions. Although the link between state and money, and its standard of identity and account may be clear, particularly in earlier stages of economic development, the extent to which the state is widely felt to hold responsibility for 'sound money' is less clear in modern democracies, where there are many other public responsibilities implying ongoing trade-offs.

Suggested Citation

  • Chadha, Jagjit S., 2018. "Of gold and paper money," LSE Research Online Documents on Economics 90379, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:90379
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    File URL: http://eprints.lse.ac.uk/90379/
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    References listed on IDEAS

    as
    1. Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66(6), pages 467-467.
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    3. Jagjit S. Chadha & Elisa Newby, 2013. "’Midas, transmuting all, into paper’: the Bank of England and the Banque de France during the Napoleonic Wars," Cambridge Working Papers in Economics 1330, Faculty of Economics, University of Cambridge.
    4. Barro, Robert J, 1979. "Money and the Price Level under the Gold Standard," Economic Journal, Royal Economic Society, vol. 89(353), pages 13-33, March.
    5. Michael D. Bordo & Finn E. Kydland, 1990. "The Gold Standard as a Rule," NBER Working Papers 3367, National Bureau of Economic Research, Inc.
    6. Stephen Morris & Hyun Song Shin, 2005. "Central Bank Transparency and the Signal Value of Prices," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 36(2), pages 1-66.
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    More about this item

    Keywords

    money; gold standard; paper money; Samuelson.;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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