Arbeitspapier
Competing currencies in the laboratory
We investigate competition between two intrinsically worthless currencies as a result of decentralized interactions between human subjects. We design a laboratory experiment based on a simple two-country, two-currency search model to study factors that affect circulation patterns and equilibrium selection. Experimental results indicate foreign currency acceptance rates decrease with relative country size but are not significantly affected by the degree of integration. The laboratory economies tend to converge to a unified currency regime where both currencies circulate at home and abroad, even if other regimes are theoretical possibilities. Introducing government transaction policies biased towards domestic currency significantly reduces the acceptability of foreign currency. These findings suggest government policies can serve as a coordination device when multiple currencies are available.
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Canada Staff Working Paper ; No. 2017-53
- Klassifikation
-
Wirtschaft
Design of Experiments: Laboratory, Group Behavior
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Money and Interest Rates: General
- Thema
-
Central bank research
Digital currencies
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Jiang, Janet Hua
Zhang, Cathy
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Canada
- (wo)
-
Ottawa
- (wann)
-
2017
- DOI
-
doi:10.34989/swp-2017-53
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Jiang, Janet Hua
- Zhang, Cathy
- Bank of Canada
Entstanden
- 2017
Ähnliche Objekte (12)
Non-competing data intermediaries
On the value of virtual currencies
Central Bank digital currencies: A framework for assessing why and how
Eggs in one basket: Security and convenience of digital currencies
Canadian bank notes and Dominion notes: Lessons for digital currencies
Swedish Riksbank notes and Enskilda bank notes: Lessons for digital currencies
Multilateral adjustment and exchange rate dynamics: The case of three commodity currencies
The carry trade, portfolio diversification, and the adjustment of the Japanese yen
Exchange rate regimes, globalisation, and the cost of capital in emerging markets
Jump-diffusion long-run risks models, variance risk premium and volatility dynamics
Liquidity transformation and bank capital requirements
The causal impact of migration on US trade: Evidence from political refugees
Non-competing data intermediaries
On the value of virtual currencies
Central Bank digital currencies: A framework for assessing why and how
Eggs in one basket: Security and convenience of digital currencies
Canadian bank notes and Dominion notes: Lessons for digital currencies
Swedish Riksbank notes and Enskilda bank notes: Lessons for digital currencies
Multilateral adjustment and exchange rate dynamics: The case of three commodity currencies
The carry trade, portfolio diversification, and the adjustment of the Japanese yen
Exchange rate regimes, globalisation, and the cost of capital in emerging markets
Jump-diffusion long-run risks models, variance risk premium and volatility dynamics
Liquidity transformation and bank capital requirements
The causal impact of migration on US trade: Evidence from political refugees
Non-competing data intermediaries
On the value of virtual currencies
Central Bank digital currencies: A framework for assessing why and how
Eggs in one basket: Security and convenience of digital currencies
Canadian bank notes and Dominion notes: Lessons for digital currencies
Swedish Riksbank notes and Enskilda bank notes: Lessons for digital currencies
Multilateral adjustment and exchange rate dynamics: The case of three commodity currencies
The carry trade, portfolio diversification, and the adjustment of the Japanese yen
Exchange rate regimes, globalisation, and the cost of capital in emerging markets
Jump-diffusion long-run risks models, variance risk premium and volatility dynamics
Liquidity transformation and bank capital requirements