E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit
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Canadian Bank Notes and Dominion Notes: Lessons for Digital Currencies
This paper studies the period in Canada when both private bank notes and government-issued notes (Dominion notes) were simultaneously in circulation. Because both of these notes shared many of the characteristics of today's digital currencies, the experience with these notes can be used to draw lessons about how digital currencies might perform. -
Price-Level Dispersion versus Inflation-Rate Dispersion: Evidence from Three Countries
Inflation can affect both the dispersion of commodity-specific price levels across locations (relative price variability, RPV) and the dispersion of inflation rates (relative inflation variability, RIV). Some menu-cost models and models of consumer search suggest that the RIV-inflation relationship could differ from the RPV-inflation relationship.