A Model of Commodity Money, with Applications to Gresham's Law and the Debasement Puzzle

Velde, François R.; Weber, Warren E.; Wright, Randall

doi:10.1006/redy.1998.0037

Cited by 94 publications

(64 citation statements)

References 24 publications

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“…Weber continued the analysis of the Gresham's Law in [34], where the authors are proposing a model of commodity money and debasement. and prices determined via bilateral bargaining.…”

Section: Controversies On the Gresham's Lawmentioning

confidence: 99%

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Some Notes on the Gresham's Law of Money Circulation

Sparavigna¹

2014

ijSciences

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The Gresham's Law is among the most known laws of economic science. In its popular version, the law is telling that when a government overvalues one type of money and undervalues another, the undervalued money disappears while the overvalued money floods into circulation. Named after Thomas Gresham, a financier of Tudor dynasty, this law was stated by Nicole Oresme and Nicolaus Copernicus. Here we discuss it and follow its long history.

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“…Weber continued the analysis of the Gresham's Law in [34], where the authors are proposing a model of commodity money and debasement. and prices determined via bilateral bargaining.…”

Section: Controversies On the Gresham's Lawmentioning

confidence: 99%

“…After solving the model, the researchers found that there can be equilibrium with both coins in circulation. Since coins may trade "by weight" or "by tale", the extent to which Gresham's Law holds is discussed in [34] in the various cases.…”

Section: Controversies On the Gresham's Lawmentioning

confidence: 99%

Some Notes on the Gresham's Law of Money Circulation

Sparavigna¹

2014

ijSciences

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“…E-mail address: yli@mx.nthu.edu.tw (Y. Li). 1 Some economists assert that a qualified version of Gresham's law requires a fixed exchange rate between the two monies (Friedman and Schwartz, 1963), but fixed exchange rate among various monies was not very often observed in history (see, for example, Rolnick and Weber, 1986;Velde et al, 1999). at the mint, and good money over-weight coins or money undervalued at the mint. Given what we know about history there had been times when bad money failed to drive out good, and many economists have questioned the empirical validity of Gresham's law.…”

Section: Introductionmentioning

confidence: 99%

“…Moreover, to explain circulation of various monies and determine endogenously their exchange value, we need a model which leaves circulation and exchange value of money as an equilibrium result rather than an assumption. To account for this, Velde et al (1999) use a search-based model of commodity money without prior assumptions on exchange rates to study issues concerning the validity of Gresham's law and the mechanics of a debasement. They introduce private information by assuming that people are not always able to distinguish among various types of coins.…”

Section: Introductionmentioning

confidence: 99%

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Government transaction policy and Gresham's law

2002

Journal of Monetary Economics

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A search-theoretic model is used to study how legal restrictions may account for the fact that Gresham's law sometimes holds but other times fails. Legal restrictions is modeled here as policies that government adopts in the transactions with private agents, such as at what prices it accepts a currency in exchange for goods and at what ratios it conducts currency exchange. A government policy sufficiently favorable to light coins can induce the existence of an equilibrium where both coins circulate and light coins are even accepted at a premium. A policy favorable to heavy coins may increase their value to such an extent that they are hoarded from circulation, when this equilibrium did not exist without interventions. r

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How Bad Leaders Can Drive Out Good Leaders

Emblemsvåg,

Emblemsvåg

2023

J of Leadership Studies

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Destructive leadership has been thoroughly described in the literature. As the term itself indicates, destructive leadership is a leadership style that violates the well‐being or job satisfaction of subordinates, and destroys value for the organization directly, or through less motivated and effective employees. Despite such negative effects, some members might prosper from it and may even support destructive leadership. Worse, sometimes destructive leaders are promoted. If the organization rewards destructive leaders with promotions and responsibility, followers may see these behaviors as a way to get ahead and destructive behavior can become a part of the organizational culture. The literature still reports increased turnover intentions. In the current article, the consequences of destructive leadership on leaders and followers are examined. Specifically, destructive leadership is examined through a literature review and by using Gresham's law as an analogy. Gresham's law states that “bad money drives out good money,” and the current article demonstrates that a Gresham‐tendency can also be observed for leaders under certain circumstances. Thus, the current study converts Gresham's law into a conceptual model for the evolution of destructive leadership in organizations. The proposed model qualitatively describes how various types of destructive leaders influence the organization under certain circumstances.

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A Model of Commodity Money, with Applications to Gresham's Law and the Debasement Puzzle

Cited by 94 publications

References 24 publications

Some Notes on the Gresham's Law of Money Circulation

Some Notes on the Gresham's Law of Money Circulation

Government transaction policy and Gresham's law

How Bad Leaders Can Drive Out Good Leaders

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