Money and Loans
AbstractThe conditions under which money is essential to support a Pareto optimum, those where loan mechanisms suffice, and those such that both are essential is examined. In the absence of a coincidence of wants, loans and/or money are necessary to facilitate exchange. In a large economy with a limited communication technology, the expected consequences to reneging are insufficient for the repayment of the utility maximizing level of loans to be time consistent. In contrast, redeemability of money is not associated with a particular agent so money has no time consistency problems. Consequently, in large economies money is essential. If, additionally, individual Clower constraints bind, loans and money are both essential.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Queen's University, Department of Economics in its series Working Papers with number 643.
Length: 43 pages
Date of creation: 1985
Date of revision:
Other versions of this item:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Li, Ying-Syuan & Li, Yiting, 2013. "Liquidity and asset prices: A new monetarist approach," Journal of Monetary Economics, Elsevier, vol. 60(4), pages 426-438.
- Hancock, Diana & Humphrey, David B., 1997. "Payment transactions, instruments, and systems: A survey," Journal of Banking & Finance, Elsevier, vol. 21(11-12), pages 1573-1624, December.
- Bernard, Philippe & Venet, Baptiste, 2005. "Transformation Risk, Inefficiency of the Legal System and Financial Dualism in Developing Countries," Economics Papers from University Paris Dauphine 123456789/3515, Paris Dauphine University.
- Jafarey, Saqib & Rupert, Peter, 2001. "Limited Commitment, Money, and Credit," Journal of Economic Theory, Elsevier, vol. 99(1-2), pages 22-58, July.
- Xavier Cuadras-Morató, 2009.
"Circulation Of Private Notes During A Currency Shortage,"
University of Manchester, vol. 77(4), pages 461-478, 07.
- Xavier Cuadras Morató, 2005. "Circulation of private notes during a currency shortage," Economics Working Papers 811, Department of Economics and Business, Universitat Pompeu Fabra.
- Xavier Cuadras, 2005. "Circulation of Private Notes during a Currency Shortage," Working Papers 164, Barcelona Graduate School of Economics.
- Wang, Yong & Zhou, Hanqing, 2001. "Money and credit in liquidity provision," Journal of Banking & Finance, Elsevier, vol. 25(11), pages 2041-2067, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Babcock).
If references are entirely missing, you can add them using this form.