This paper inquires into monetary standards, focusing on the characteristics of money instead of the exchange rate regime. The transition from commodity to fiat money, a major break in monetary evolution, has led to international arrangements that represent an application of the competitive...

The optimum quantity of money proposition, whose validity is agreed on, is actually open to criticism. The present paper argues that the weaknesses of the Friedman Rule from the application of the welfare theorems of general equilibrium theory to a monetary economy and shows how, the consistency...