This paper presents a case study of the emergence of currency from a barter economy. We use this case study to attempt to shed light on the relative importance of various types of frictions that lead to the emergence of money in search-theoretic models of currency formation. In particular, our...

This paper presents a case study of the emergence of currency from a barter economy, a process discussed theoretically by Menger (1892). In particular, we use this case study to attempt to adjudicate between chartalist and emergent theories of currency formation. Using the records of an online...