Money and prices: A model of search and bargaining
成果类型：
Article
署名作者：
Shi, SY
刊物名称：
JOURNAL OF ECONOMIC THEORY
ISSN/ISSBN：
0022-0531
DOI：
10.1006/jeth.1995.1081
发表日期：
1995
页码：
467-496
关键词：
摘要：
This paper makes commodities divisible and incorporates bargaining into the search-theoretic model of money to determine the purchasing power of money (or price). It is shown that two monetary equilibria always coexist where fiat money is universally accepted. The two equilibria differ in price, output, welfare, and the velocity of money. Sunspot monetary equilibria exist in which money is universally accepted in all states of the economy. Multiplicity has novel implications on the effectiveness of currency substitution and exchange market intervention. (C) 1995 Academic Press, Inc.