Commodity money standards in medieval and early modern Europe were characterized by recurring complaints of small … model with two indivisible coins with different intrinsic values. The model shows that small change shortages can exist in … interpreted as optimal responses to changes in fundamentals. Further, the model shows that replacing full-bodied small coins with …

This paper studies the joint business cycle dynamics of inflation, money growth, nominal and real interest rates and the … velocity of money. I extend and estimate a standard cash and credit monetary model by adding idiosyncratic preference shocks to …