Working Paper

Comment on Cavalcanti and Nosal's \"Counterfeiting as private money in mechanism design\"


Abstract: In this comment, the author extends Cavalcanti and Nosal's (2010) framework to include the case of perfectly divisible money and unrestricted money holdings. He shows that when trade takes place in Walrasian markets, counterfeits circulate and the Friedman rule is still optimal.

Keywords: Counterfeits and counterfeiting; Money;

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Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Working Papers

Publication Date: 2010

Number: 10-29