From private banking to central banking: Ingredients of a welfare analysis

Neil Wallace

Research output: Contribution to journalArticlepeer-review

12 Scopus citations

Abstract

An earlier analysis of Cavalcanti and Wallace showing that the set of allocations achievable using outside (government) money is a subset of those achievable using inside (private) money is extended. Here, the class of outside-money allocations is enriched by allowing the planner to make transfers in the form of outside money. At the same time, punishments for defection are weakened. It is shown that the subset result continues to hold, although for a different reason than in the Cavalcanti and Wallace analysis.

Original languageEnglish (US)
Pages (from-to)619-631
Number of pages13
JournalInternational Economic Review
Volume46
Issue number2
DOIs
StatePublished - May 2005

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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