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I'm reading a paper right now that refers to divisible and one-period IOUs, but doesn't explain what the shorthand stands for.

I understand it's a unit of payment, and guess that is the same "thing" cashless NeoKeynesian models use. Am I correct? What does IOU stand for? Are there any other relevant properties/definitions I need to be aware of?

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It stands for I-Owe-You. As in a promise.

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