The paper uses a dual-currency search theoretic approach to demonstrate that it is possible to induce the acceptance of a local currency in a dollarized economy. In the model, we assume that a foreign currency is in full circulation and the government policy tool is the convertibility of the local currency to the foreign currency. We show that the economy can achieve equilibria where two monies...

♣ The authors are grateful to Doo Yong Yang, and participants in the 5th APEF International Conference on 5-6 July 2006 at Kangwon National University, Korea for their useful comments and suggestions. RIETI Discussion Papers Series aims at widely disseminating research results in the form of professional papers, thereby stimulating lively discussion. The views expressed in the papers are solely...

Designed to compete with fiat currencies, bitcoin proposes it is a crypto-currency alternative. Bitcoin makes a number of false claims, including: bitcoin can be a reserve currency for banking; hoarding equals saving; and that we should believe bitcoin can expand by deflation to become a global transactional currency supply. Bitcoin’s developers combine technical implementation proficiency with...

In the past few years digital financial assets and currency have been getting more popularity among tools of economy. Due to demand for turnover currency, as well formation an increasing number jural relations, object which they are, require efficient legal regulation, is not a simple task legislator because their dinamic development. Lack such regulation causes non-uniform regulatory enforceme...

The majority of forecasting methods use a physical time scale for studying price fluctuations of financial markets, making the flow of physical time discontinuous. An alternative to this is event-based summaries. Directional changes (DC), which is a new event-based summary method, allows for new regularities in data to be discovered and exploited, as part of trading strategies. Under this parad...

Despite the fast growing popularity of in-game purchases of virtual currency (to obtain game enhancing virtual items) in digital games, there is very limited formal research that studies this new business model and its impacts on players’ gameplay behavior and social welfare. This paper builds upon the classic labor-leisure model to capture players’ dual experience of enjoying leisure and earni...

One simple method of recognizing paper currencies has been introduced. It considers different dimensions, areas, Euler numbers, correlations between images as features. It uses Weighted Euclidean Distance for classification. The method uses the case of Saudi Arabian paper currency as a model currency under consideration. It uses fifth series of currency, issued by Saudi Arabian Monetary Agency ...

The Lévy Libor or market model which was introduced in Eberlein and Özkan (2005) is extended to a multi-currency setting. As an application we derive closed form pricing formulas for cross-currency derivatives. Foreign caps and floors and cross-currency swaps are studied in detail. Numerically efficient pricing algorithms based on bilateral Laplace transforms are derived. A calibration example ...