Legal-tender enforcement of debased money is a prisoner's dilemma whose equilibrium outcome is the circulation of bad money, as shown by French Revolution assignat laws that made it illegal for a merchant to ask which kind of money he would be paid before making a deal.

factualpending

Speaker

George Selgin

Evidence Quote

“a simple prisoner's dilemma model will tell you what the equilibrium outcome of that's going to attract ad money”

Source

George Selgin on Free Banking 11/17/2008— EconTalk
Created: 6/15/2026, 9:20:23 AM

My Notes

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