that an optimum is attained when holdings and aggregate shocks are discrete.

Under the U.S. National Banking System (NBS), in effect from 1863--1914, banks with national charters could issue notes under four main restrictions: full collateral in the form of government bonds, a per-period tax on outstanding notes, redemption of notes into (outside) money on demand, and a...

Long times series on production of gold and the value of gold, taken from Jastram's book "The Golden Constant", are used to estimate a Cagan-type demand function that relates the real total value of gold to its expected rate of return. The model assumes that gold production and a latent scale...