Inside and outside money as alternative media of exchange

We study a random-matching model of money in which a subset of people, call ed bankers, have: known histories and the rest, called nonbankers, have unk nown histories. Earlier, we showed that if there are no outside assets, the n an optimal arrangement has bankers issuing objects, banknotes, that are u sed in trades involving nonbankers. Here, the same model is used to compare such exclusive use of inside money to the exclusive use of outside money. We show that the set of implementable outcomes using outside money is a str ict subset of the set using inside money.