Smith, Eric; Shubik, Martin - Cowles Foundation for Research in Economics, Yale University - 2005
In a previous essay we modeled the enforcement of contract, and through it the provision of money and markets, as a … production of goods. Government and a central bank provided fiat money and enforced repayment of loans, giving fiat a predictable … comparison, we consider the same trade problem without government or fiat money, using instead a durable good (gold) as a …