Search for a Theory of Money
The classical and early neoclassical economists knew that the essential function of money was its role as a medium of exchange; Recently, this idea has been formalized using search-theoretic noncooperative equilibrium models of the exchange process. The goal of this paper is to use a simple model of this class to analyze four substantive issues in monetary economics: the interaction between specialization and exchange, dual fiat currency regimes, the welfare improving role of money, and the susceptibility of monetary economies to extrinsic uncertainty.
|Date of creation:||Oct 1990|
|Date of revision:|
|Publication status:||published as "A Search-Theoretic Approach to Monetary Economics" American Economic Review, March 1993, pp. 63-77.|
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- Peled, Dan, 1985. "Stochastic inflation and government provision of indexed bonds," Journal of Monetary Economics, Elsevier, vol. 15(3), pages 291-308, May.
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"More on Money as a Medium of Exchange,"
Springer, vol. 3(2), pages 297-314, April.
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Journal of Political Economy,
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- King, Robert G. & Plosser, Charles I., 1986. "Money as the mechanism of exchange," Journal of Monetary Economics, Elsevier, vol. 17(1), pages 93-115, January.
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