Local Currency as a Development Strategy∗
نویسنده
چکیده
The introduction of a local currency may serve as a signal of demand for local goods. Where demand uncertainty deters firms from investing in more productive technologies, such a signal improves the chances that technology choice will be optimal. The introduction of a local currency therefore always improves ex-ante efficiency and may lead to ex-post efficiency, with strictly higher levels of productivity and welfare. ∗The authors would like to thank Larry Blume, Steve Coate and Ravi Kanbur for invaluable comments and suggestions. They are also grateful to Kaushik Basu, Krishanu Maulik, Ted O’Donoghue, Salvador Ortigueira, Karl Shell, Özgür Toros and seminar participants at Cornell University for useful suggestions.
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تاریخ انتشار 2001