You are not currently logged in.
Access JSTOR through your library or other institution:
If You Use a Screen ReaderThis content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
The Resource Cost of Irredeemable Paper Money
Journal of Political Economy
Vol. 94, No. 3, Part 1 (Jun., 1986), pp. 642-647
Published by: The University of Chicago Press
Stable URL: http://www.jstor.org/stable/1833052
Page Count: 6
You can always find the topics here!Topics: Commodities, Paper money, Resource costs, Currency, Economic inflation, Economic uncertainty, Interest rates, Futures markets, Price levels, Political economy
Were these topics helpful?See somethings inaccurate? Let us know!
Select the topics that are inaccurate.
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Preview not available
Since 1971, no major currency has a formal link to a commodity. For the first time in history, every currency is wholly irredeemable, not as a temporary expedient but as a permanent matter. Monetary economists have generally treated irredeemable paper money as involving negligible real resource costs compared with a commodity currency. To judge from recent experience, that view is clearly false as a result of the decline in long-term price predictability. A key question for the future is, What if any substitute for a commodity standard will emerge as a long-term anchor for the price level?
Journal of Political Economy © 1986 The University of Chicago Press