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Full-Text Articles in Social and Behavioral Sciences
Fiat Money And The Efficient Financing Of The Float, Production And Consumption. Part I: The Float, Martin Shubik
Fiat Money And The Efficient Financing Of The Float, Production And Consumption. Part I: The Float, Martin Shubik
Cowles Foundation Discussion Papers
The basic distinction in the optimization conditions between the general equilibrium model of a T period exchange economy and a strategic market game process model is between a set of equations homogeneous of order zero and a set of nonhomogeneous equations. The latter have an amount M of outside or fiat money added to the system. If there is an outside bank willing to lend or accept deposits at an interest rate rho > 0 at the end of time T the initial amount of money M will have been consumed in interest payments to the outside bank. The price level …