Coordination in the use of money

• 成果类型: Article
• 署名作者: Araujo, Luis; Guimaraes, Bernardo
• 署名单位: Getulio Vargas Foundation; Michigan State University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2014.01.009
• 发表日期: 2014
• 页码: 38-46
• 关键词: money; beliefs; COORDINATION

摘要

Fundamental models of money, while explicit about the frictions that render money essential, are silent on how agents actually coordinate in its use. This paper studies this coordination problem, providing an endogenous map between the primitives of the environment and the beliefs on the acceptability of money. We show that an increase in the frequency of trade meetings, besides its direct impact on payoffs, facilitates coordination. In particular, for a large enough frequency of trade meetings, agents always coordinate in the use of money. (C) 2014 Elsevier B.V. All rights reserved.