Journal of Political Economy Vol. 94 No. 2 1986
Some Anecdotal Evidence Relating to the Legal Restrictions Theory of the Demand for Money
Abstract
According to the legal restrictions theory of the demand for money, characteristics such as denomination and negotiability of interest-bearing debt are what prevents it from being employed as a transactions medium. During the years 1915-27, the government of France used as a financing instrument securities that, by the legal restrictions theory, should have circulated in exchange. An experience by Eleanor Lansing Dulles, attempting to use one of these securities in a purchase, as well as other evidence, suggests that they did not.
- DOI
- 10.1086/261373
- Volume
- 94
- Issue
- 2
- Pages
- 260-265
- Language
- en
- Sources
- openalex crossref