Modeling small change: A review article

Neil Wallace

Research output: Contribution to journalArticlepeer-review

7 Scopus citations


In The Big Problem of Small Change, Sargent and Velde apply a cash-in-advance model to the history of coinage and to contemporary thought about coinage. They assert that their model accounts for puzzling observations involving the depreciation and disappearance of small coins. I question its usefulness for that purpose and for other issues pertaining to coinage. My main concern is that their model does not depict the problems usually associated with full-bodied coinage systems-problems that stem from the technological difficulties of having a full-bodied coinage system in which money is portable, divisible, durable, and recognizable.

Original languageEnglish (US)
Pages (from-to)1391-1401
Number of pages11
JournalJournal of Monetary Economics
Issue number6
StatePublished - Sep 2003

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics


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