Hu, Tai-Wei; Rocheteau, Guillaume - In: Journal of Economic Theory 148 (2013) 6, pp. 2520-2560
This paper adopts mechanism design to investigate the coexistence of fiat money and higher-return assets. We consider an economy with pairwise meetings where fiat money and risk-free capital compete as means of payment, as in [28]. The trading mechanism in pairwise meetings is chosen among all...
