Accession Number : AD0774093

Title :   A Theory of Money and Financial Institutions. Part XIII: Trade with Spot Markets, Fiat Money and Internal Banking,

Corporate Author : YALE UNIV NEW HAVEN CONN COWLES FOUNDATION FOR RESEARCH IN ECONOMICS

Personal Author(s) : Shubik,Martin

Report Date : 18 DEC 1973

Pagination or Media Count : 49

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.

Descriptors :   *Banking, *Economic models, Commerce, Equilibrium(General), Money, Game theory

Subject Categories : Economics and Cost Analysis

Distribution Statement : APPROVED FOR PUBLIC RELEASE