The Monetary Mechanism of Stateless Somalia
William J. Luther
April 28, 2012
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.
Number of Pages in PDF File: 26
Keywords: institutions, monetary regime, monetary standard, Somalia, Somali shilling, purchasing power
JEL Classification: E42
Date posted: April 29, 2012 ; Last revised: August 26, 2015
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