Fiat Money in a Search Theoretical Model with Generalist Consumers
AbstractThere are two general ways in which the role of fiat money has been introduced in the standard monetary search-theoretical model. The first is to bring in the model a fiat object with different intrinsic properties. The second is to introduce a centralized institution that favors the use of fiat money through specific transaction policies. We carry out a similar exercise for a modified version of the model in which agents have a different structure of preferences. We characterize the conditions for which there exist equilibria with circulating fiat money and evaluate the main differences with the results derived from the standard model.
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Bibliographic InfoPaper provided by Barcelona Graduate School of Economics in its series Working Papers with number 48.
Date of creation: May 2003
Date of revision:
Fiat money; search theory; government policy;
Other versions of this item:
- Xavier Cuadras-MoratÛ, 2004. "Fiat Money in a Search-Theoretical Model with Generalist Consumers," Manchester School, University of Manchester, vol. 72(1), pages 152-166, 01.
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- E00 - Macroeconomics and Monetary Economics - - General - - - General
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