A Theory of Money and Financial Institutions. Part XIII: Trade with Spot Markets, Fiat Money and Internal Banking,
Abstract
In the paper the author continues the exploration of extremely simple models of markets with monetary components. In the last two papers the author examined how a simple economy might run utilizing only a fiat money with and without trade in ownership claims. In the models investigated all markets were spot markets and there was no banking and no uncertainty. It appears that hoarding is sufficient to adjust relative prices and if all consumer goods are produced from producer goods then a trade in ownership certificates provides sufficient backing that Pareto optimal trades can be obtained.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 18, 1973
- Accession Number
- AD0774093
Entities
People
- Martin Shubik
Organizations
- Yale University