Velde, François R.; Weber, Warren E.; Wright, Randall - In: Review of Economic Dynamics 2 (1999) 1, pp. 291-323
What are the conditions under which Gresham's Law holds? And what are the mechanics of a debasement? To analyze these questions, we develop a model of commodity money with light and heavy coins, imperfect information, and prices determined via bilateral bargaining. There are equilibria with...