Debt enforcement and the value of money

• 成果类型: Article
• 署名作者: Breu, Mariana Rojas
• 署名单位: Universite PSL; Universite Paris-Dauphine
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2016.12.010
• 发表日期: 2017
• 页码: 237-251
• 关键词: money; inflation; Debt enforcement

摘要

This paper presents a framework in which fiat money has value in equilibrium even though a risk-free higher-return asset can be equally used as a medium of exchange. In a limited-commitment environment, agents may prefer to borrow a low-return asset because that results in a larger borrowing capacity. Thus, a monetary equilibrium in which money is dominated in rate of return exists. (C) 2016 Elsevier Inc. All rights reserved.