devised to cure the problem. We use a cash-in-advance model of commodity money to define a currency shortage, show that they … could develop and persist under commodity money regime, and analyze the role played by each ingredient in the standard … formula. A companion paper documents the evolution of monetary theory, monetary experiments and minting technology over the …

of goods in that environment to be conducted on spot markets where those goods trade for money. We prove a conjecture … trade using outside, fiat money, of a recent characterization by Levine and Zame [2002] of environments in which spot trade … using inside money, in the form of one-period debt payable in a commodity, is nearly Pareto efficient. We also study a …