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Inflation-free Pricing Rules for a Generalized Commodity-Reserve Currency

Jon C. Luke

Journal of Political Economy 1975

Let currency be issued with several commodities as backing. If certain pricing rules are strictly followed, it is shown that currency can then be redeemed without restriction for any of the commodities and that, according to a certain definition, the currency retains constant value, so that general inflation cannot occur.

DOI
10.1086/260355
Volume
83 (4)
Pages
779-790
Language
en
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