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Article: Stamp scrip: money people paid to use: substitutes for government-issued money are produced and used from time to time even in countries like the United States. Understanding why people turn to these substitutes and to what degree they are successful--or not--can teach us a lot about the elements essential to a well-functioning currency.
- Article from:
- Economic Commentary (Cleveland)
- Article date:
- April 1, 2008
- Author:
CopyrightCOPYRIGHT 2008 Federal Reserve Bank of Cleveland. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Imagine you just want a cup of coffee. It's only $1.25, but you have no cash in your wallet. They don't take checks. They don't take credit cards. Cash only! Or...the last bus out of town leaves in 5 minutes. You have no change for the $1.75 fare, and it's 16 miles home.
Ever been there? While such cash-poor moments happen less frequently in our modern age of credit cards, gift cards, prepaid store cards, and debit cards, each of us has probably lived through a few times where the absence of cash on hand was a big inconvenience. Throughout the history of our country, there have been many times where shortages of cash were so severe they made life difficult for a ...