Another term for ancillary currency. – When gold and silver are used simultaneously as currency metals, there is no legally prescribed value ratio between the two precious metals. – Not (only) one central bank, but several banks put means of payment into circulation. Economic transactions will prefer the money that is most stable in value. The state would have to limit itself to ensuring equal treatment of the different means of payment, especially for the fulfillment of tax obligations. The advantages and arguably the overwhelming disadvantages of such coexistence were widely discussed in national economic monetary theory around 1970. – See free banking, money, private.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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