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On the Origins and Evolving Role of Money

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Author Info
Jean-Paul Chavas
Daniel W. Bromley

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Abstract

This paper explores the origins and evolving role of money. It stresses the role of money in solving coordination problems. This role is present with or without exchange. A historical overview of money stresses the evolutionary aspects of monetary institutions. The analysis develops a general evaluation of economic efficiency under transaction costs and imperfect information, and in the presence of public goods and externalities. It identities a nonneutral role for money. It argues that the efficiency gains from exchange are only part of the benefits of a monetary economy.

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File URL: http://www.ingentaconnect.com/content/mohr/jite/2008/00000164/00000004/art00003
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Publisher Info
Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 164 (2008)
Issue (Month): 4 (December)
Pages: 624-651
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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200812)164:4_624:otoaer_2.0.tx_2-l

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Find related papers by JEL classification:
E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
G2 - Financial Economics - - Financial Institutions and Services
N2 - Economic History - - Financial Markets and Institutions

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This page was last updated on 2009-12-3.

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