Theoretically commodity prices are expected to overshoot the money supply in the short run but to vary with unit proportionality in the long run. This follows from the observation that consumer prices are sticky and that commodity prices, set in auction markets are fully flexible. There is...

In a surprisingly growing number of regions in Germany private "regional currencies" are issued as a cash substitute for the euro. Currently, these regional currencies are conceived almost exclusively as Schwundgeld (depreciative currency), which loses value on a predetermined timescale. This...

Cambodia became dollarized suddenly in the early 1990s, as a result of massive dollar inflows stemming from a postconflict situation. Considering that the amount of dollars in circulation is unusually high, we attempt to estimate the true degree of dollarization empirically. Our results show...