With some models of money and a representative-agent there is no reason for monetary trade because identical individuals can consume their own production. Lucas proposed a parable involving differentiated products in a cash-in-advance model to avoid this problem. This paper studies Lucas?s...

This article attempts to study the function of monetary systems as networks of communication, which facilitate the channelling of social effort in the presence of exogenous conditions. A model of monetary system is being proposed, where monetary balances are algorithms of response, built up in...

With some models of money and a representative-agent there is no reason for monetary trade because identical individuals can consume their own production. Lucas proposed a parable involving differentiated products in a cash-in-advance model to avoid this problem. This paper studies Lucas?s...