Silvio Gesell hypothesized that money depreciation is economically and socially beneficial, ideas that have often been contended. Here I analyze that in a Sidrauski model in which households additionally have a "love of wealth"-motive. It is shown Gesell's claims may be valid in a...

Silvio Gesell hypothesized that money depreciation is economically and socially beneficial, an idea that have often been contended. Here I analyze the spirit of his claims in a Sidrauski model in which households additionally have a 'love of wealth'motive. The analysis is presented in two parts,...

Silvio Gesell argued that 'rusting' money is economically and socially beneficial; that claim has often been contended. In Part II of the paper, I concentrate on the long-run implications of his ideas. I show that introducing money depreciation in isolation may be economically non-beneficial in...

Are capital depreciation allowances when coupled with capital income taxes good instruments for redistribution in the long run? In a simple two‐agent‐economy I find that accelerated depreciation is good for growth, but bad for redistribution. The opposite holds for capital income taxes....