Is uniform money always better than separate monies?

Manjong Lee

Research output: Contribution to journalArticlepeer-review


Previous studies that compare a uniform money with separate monies used models in which money is the only asset and in which individuals hold either zero or one unit of money. Here, the comparison is made using a model in which money coexists with a higher-return asset and in which individuals are permitted to hold richer portfolios of assets. The results show that a general conclusion is not possible. A uniform money has a higher expected utility than do separate monies in many examples. However, when the discount on bonds and uncertainty about the nationality of the trading partner are sufficiently high, then there are examples in which separate monies are better.

Original languageEnglish
Pages (from-to)21-42
Number of pages22
JournalOpen Economies Review
Issue number1
Publication statusPublished - 2008 Feb


  • Random matching model
  • Separate monies
  • Uniform money

ASJC Scopus subject areas

  • Economics and Econometrics


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