Details

Autor(en) / Beteiligte

• Green, Edward J.
• Zhou, Ruilin

Titel

MONEY AS A MECHANISM IN A BEWLEY ECONOMY

Ist Teil von

• International economic review (Philadelphia), 2005-05, Vol.46 (2), p.351-371

Ort / Verlag

350 Main Street , Malden , MA 02148 , USA , and 9600 Garsington Road , Oxford OX4 2DQ , UK: Blackwell Publishing, Inc

Erscheinungsjahr

2005

Quelle

Wiley-Blackwell Journals

Beschreibungen/Notizen

• We investigate the efficiency property of a monetary economy with spot trade. We prove a conjecture that is essentially due to Bewley (Models of Monetary Economics (1980); Econometrica 51 (1983), 1485-504). The gist is that monetary spot trading is nearly efficient ex ante in an environment where very patient agents can accumulate large enough money stocks to be completely self-insured. We also study examples where a nonmonetary mechanism is preferred ex ante to any monetary mechanism in a stationary environment, and where an inflationary monetary mechanism is preferred ex ante to a laissez-faire or deflationary monetary mechanism in an environment with impatient agents.