Abstract :
The interplaybetweencompetitionandtrustasefficiency-enhancingmechanismsinthe
private provisionofmoneyisstudied.Withcommitment,trustisautomaticallyachieved
and competitionensuresefficiency.Withoutcommitment,competitionplaysnorole.
Trustdoesplayarolebutrequiresaboundonefficiency.Stationaryinflationmustbe
non-negativeand,therefore,theFriedmanrulecannotbeachieved.Thequalityofmoney
can beobservedonlyafteritspurchasingcapacityisrealized.Inthissense,moneyisan
experiencegood
