Currency Competition and Consumer-Driven Unification

Originally published in Cato Journal

Consumers benefit more from competitive than from monopolistic markets in all types of spendable bank liabilities: not only checking accounts and traveler’s checks but also circulating currency. It is unlikely that banks trusted with deposits would not be trusted to issue notes.

Consumers benefit more from competitive than from monopolistic markets in all types of spendable bank liabilities: not only checking accounts and traveler’s checks but also circulating currency. It is unlikely that banks trusted with deposits would not be trusted to issue notes. In this respect, as in general, we can leave it to the market to sort out which institutions are trustworthy enough to issue currency.

Read the article at Cato Journal.

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