Electronic Resource
Berkeley, Calif.
:
Berkeley Electronic Press (now: De Gruyter)
Advances in macroeconomics
1.2001, 1, art1
ISSN:
1534-6013
Source:
Berkeley Electronic Press Academic Journals
Topics:
Economics
Notes:
A probabilistic version of lump-sum money creation is studied in a random matching model with indivisible money and individual holdings bounded at 2 units. Sufficient conditions are obtained for an ex ante optimum from among implementable steady states to involve lump-sum creation of money. The role of that creation is to change the distribution of money holdings to permit more trade to occur. Beneficial money creation is impossible in a version with a 1 unit upper bound on individual holdings, but can almost certainly happen for all higher bounds.
Type of Medium:
Electronic Resource
URL:
http://www.bepress.com/bejm/advances/vol1/iss1/art1
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