Commodity Money in a Convex Trading Post Sequence Economy
AbstractGeneral equilibrium is investigated with N commodities deliverable at T dates traded spot and futures at Â½ N 2T 3 dated commodity-pairwise trading posts. Trade is a resource-using activity recovering transaction costs through the spread between (bid) wholesale) and ask (retail) prices (pairwise rates of exchange). Budget constraints are enforced at each trading post separately implying demand for a carrier of value between trading posts and over time, commodity money (spot or futures). Trade in media of exchange and stores of value is the difference between gross and net inter-post trades. â€œDemand for â€˜moneyâ€™â€ is stocks held for retrade.
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Bibliographic InfoPaper provided by Department of Economics, UC San Diego in its series University of California at San Diego, Economics Working Paper Series with number qt2s87k9cj.
Date of creation: 19 Aug 2008
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Equilibrium; Money and Interest Rates;
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- Starr, Ross M., 2008. "Mengerian Saleableness and Commodity Money in a Walrasian Trading Post Example," University of California at San Diego, Economics Working Paper Series qt92k1n9mn, Department of Economics, UC San Diego.
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