Social and Behavioral Sciences Commons^™

Enough Commodity Money And The Selection Of A Unique Competitive Equilibrium, Martin Shubik

Cowles Foundation Discussion Papers

Suppose that we reformulate the exchange economy as a strategic market game. As all purchases are paid for in cash it is possible to attach precise meaning to what is meant by enough money. As the game is a single simultaneous bid and offered at m trading posts and m prices are all simultaneously determined, in essence the trading technology is completely specified.