IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Commodity money and multilateral meetings

Listed author(s):
  • D. Puzzello

    (University of Kentucky)

  • R. de O. Cavalcanti


This paper is a first step towards a better understanding of the role of multilateral meetings in modern monetary models. We apply the implementability approach to a model à la Lagos and Wright. In the original model, periodic access to the centralized market (i.e., one multilateral meeting encompassing the whole population) and quasilinear preferences allow agents to reoptimize their portfolios each period thus obtaining a degenerate distribution of (fiat) money holdings. It turns out that allowing agents to have periodic access to a commodity money production technology (but no fiat money) leads to the same type of result, no matter whether agents interact in a centralized market or remain unmatched (in addition to the random decentralized markets). In other words, the crucial features leading to tractability appear to be quasilinear preferences and a device that allows agents to rebalance their portfolios. Whether agents do so through centralized markets in environments with fiat money, or through the access to a commodity money technology seem not to make a substantial difference. In the second part of the paper, we extend the model by introducing multiple multilateral meetings and we analyze it under a variety of equilibrium concepts.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Society for Economic Dynamics in its series 2007 Meeting Papers with number 817.

in new window

Date of creation: 2007
Handle: RePEc:red:sed007:817
Contact details of provider: Postal:
Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:red:sed007:817. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.