Limited information, money, and competitive equilibrium
In an overlapping generations model with borrowing and lending, uncertainty, and asymmetric information, fiat money may be essential to the existence of a competitive equilibrium. It may also serve to enhance the information of economic agents in a well-defined sense. In addition, the model presented provides suggestions about why the presence of valued fiat currency is essential to existence of equilibrium, even though in equilibrium perfect substitutes for money may exist.
Year of publication: |
1985
|
---|---|
Authors: | Smith, Bruce D. |
Institutions: | Federal Reserve Bank of Minneapolis |
Saved in:
freely available
Saved in favorites
Similar items by person
-
The Suffolk Bank and the Panic of 1837: how a private bank acted as a lender-of-last-resort
Rolnick, Arthur J., (1998)
-
Inflation and financial market performance
Boyd, John H., (1997)
-
Money, nonconvex preferences, and the existence of equilibrium: a note
Smith, Bruce D., (1983)
- More ...