Invites you to a

School seminar presented by

Cathy Zhang

(Purdue University)

On the Emergence of an International Currency

Co-authors:
Yaroslav Rosokha (Purdue University)
Marcos Cardozo (Purdue University))

Thursday 30 March 2023

11.00am – 12.30pm

Zoom:  85848202241

Abstract: We integrate theory and experimental evidence to study the emergence of different international monetary arrangements based on the circulation of two intrinsically worthless fiat currencies as media of exchange. Our framework is based a simple two-country, two-currency search model where the value of each currency is jointly determined from private agents’ decisions and   monetary policy formalized as changes in a country’s money growth rate. We interpret the dynamics of acceptance patterns and inflation from the laboratory through the lens of an evolutionary learning model and show how the emergence of international currency depends on monetary policy and relative inflation rates.

For further information contact: School seminar series coordinators Ye Lu (ye.lu1@sydney.edu.au) & Alastair Fraser (alastair.fraser@sydney.edu.au)

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