The monetary mechanism of stateless Somalia

A peculiar monetary institution emerged during the period of interregnum in Somalia from January 1991 to August 2012. Without a functioning government to restrict the supply of notes in circulation, Somalis found it profitable to contract with foreign printers and import forgeries. The exchange valu...

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Bibliographic Details
Published inPublic choice Vol. 165; no. 1/2; pp. 45 - 58
Main Author Luther, William J.
Format Journal Article
LanguageEnglish
Published New York Springer 01.10.2015
Springer US
Springer Nature B.V
Subjects
Economic statistics
Economic theory
Economics
Economics and Finance
Labor theory of value
Money
Political Science
Public Finance
Purchasing power
Shillings
Statelessness
Studies
Somalia
Somali shilling
E42
Monetary standard
Monetary regime
Somalia
Purchasing power
Institutions
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Summary:A peculiar monetary institution emerged during the period of interregnum in Somalia from January 1991 to August 2012. Without a functioning government to restrict the supply of notes in circulation, Somalis found it profitable to contract with foreign printers and import forgeries. The exchange value of the largest denomination Somali shillings note fell from US $0.30 in 1991 to US $0.03 in 2008. However, the purchasing power eventually stabilized at the cost of producing additional notes.
ISSN:0048-5829
1573-7101
DOI:10.1007/s11127-015-0291-6