Dual Currency Circulation and Information

This paper studies dual money circulation within a model a la
Lagos andWright [18]. The main result of the analysis is the following.
In a dual currency circulation economy, (i) the money type with an
higher rate of growth circulates more widely than the money type
with a lower rate of growth, and (ii) the two monies are symmetrically
accepted if and only if they grow at the same rate.