Moneyspots: Extraneous Attributes and the Coexistence of Money and Interest-Bearing Nominal Bonds

• 成果类型: Article
• 署名作者: Lagos, Ricardo
• 署名单位: New York University
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/669681
• 发表日期: 2013
• 页码: 127-185
• 关键词: civil-war; Currency; MODEL

摘要

It is folklore among monetary theorists that, under laissez faire, without ad hoc assumptions that favor money over bonds, there do not exist equilibria in which government-issued fiat money coexists with nominal default-free, interest-bearing government bonds with similar physical characteristics. This proposition is the basis for the strongest version of the rate-of-return-dominance puzzle. In this paper I show that if-as has been the case throughout monetary history-the physical object used as fiat money is heterogeneous in an extraneous attribute, then there exist equilibria in which money coexists with interest-bearing bonds.