The development of non-monetary means of payment

Larysa Minzyuk

MPRA Paper from University Library of Munich, Germany

Abstract: This paper develops a model to investigate the private enforcement of non-monetary inter-firm payments in Russia during the 1990s. Since acceptability of means of payment can have a self-reinforcing nature, the dominance of non-monetary means of payment over money in Russia might have been a result of the driving forces of the demonetiziation equilibrium. We propose a very simple search model to explore acceptability of means of payment different from legal tender - fiat money, commodity money, and trade credit. In each case, we show that monetization through the proposed means of payment is always a possible trade pattern.

Keywords: privately created means of payment; fiat money; commodity money; reputations; Russia (search for similar items in EconPapers)
JEL-codes: D83 E00 (search for similar items in EconPapers)
Date: 2010, Revised 2010
New Economics Papers: this item is included in nep-cba, nep-cis, nep-dge and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:28167

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