Money and capital as competing media of exchange

• 成果类型: Article
• 署名作者: Lagos, Ricardo; Rocheteau, Guillaume
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Minneapolis; New York University; Federal Reserve System - USA; Federal Reserve Bank - Cleveland
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2006.07.005
• 发表日期: 2008
• 页码: 247-258
• 关键词: commodity money; Fiat money

摘要

We construct a model where capital competes with fiat money as a medium of exchange, and establish conditions on fundamentals under which fiat money can be both valued and socially beneficial. When the socially efficient stock of capital is too low to provide the liquidity agents need, they overaccumulate productive assets to use as media of exchange. When this is the case, there exists a monetary equilibrium that dominates the nonmonetary one in terms of welfare. Under the Friedman Rule, fiat money provides just enough liquidity so that agents choose to accumulate the same capital stock a social planner would. (C) 2006 Elsevier Inc. All rights reserved.