Details

Autor(en) / Beteiligte

• Green, Edward J.

Titel

Payment Arrangements and Inflation

Ist Teil von

• The American economic review, 2002-05, Vol.92 (2), p.51-57

Ort / Verlag

Nashville: American Economic Association

Erscheinungsjahr

2002

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• The question of payment arrangements and inflation are considered in the context of 2 explicit, coherent models of transactions in an economy under a regime of steady state money growth. The acceptability of Fiat money has the status in these models of an equilibrium phenomenon that results, or may fail to result, from underlying features of the environment. This feature is essential for a model to provide a nontrivial answer to the question posed. Interestingly, the 2 models provide opposite answers in the high-inflation case. It is argued that their divergence is appropriate, since they represent 2 different types of conceivable economic arrangement that might perform in distinct ways. However, it is suggested that one type of arrangement represents some arrangements that have actually been seen and are likely to be seen in the near future.