A Theory of Money and Financial Institutions. Part 36. The Money Rate of Interest (A Multiperiod Nonatomic Trading and Production Economy with Outside Money, Inside Money and Optimal Bankruptcy Rules),
Abstract
A model of trade and production through time using fiat and bank money is presented. Many of the detailed points concerning modelling of trade using fiat (= outside) and bank (= inside) money are covered elsewhere. In this paper an attempt is made to give both a self contained yet not overly discursive analysis of the roles of the two types of money and production in a multiperiod economy. The following topics are discussed: The Competitive Equilibrium and Rate of Interest; Modelling an Exchange Economy as a Game in Strategic Form; and Production and Exchange -- The finite horizon.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 27, 1977
- Accession Number
- ADA042625
Entities
People
- Martin Shubik
- Pradeep Dubey
Organizations
- Yale University