ISSN:
1129-6569
Source:
Springer Online Journal Archives 1860-2000
Topics:
Mathematics
,
Economics
Description / Table of Contents:
Abstract The first part of this paper, section 2, is devoted to a short description of a pure exchange economy model where commercial operations are carried out by using one of the existingn+1 goods as money The market situation thereby discussed bears many features of a monetary economy as drafted by R. W. Clower in his 1967 paper. It mantains anyway two basic restrictions: (a) the nature of money as commodity-money, (no fiatmoney is envisaged); and (b) the temporary isolation of the exchange process, (we discuss in fact a market in which each agent behaves as if there were no past or future). The convergence and stability problem is studied following the not-deterministic, non-tatonnement approach proposed by S. Smale and D. Friedman. An auctioneer calls prices at each instant, and transactions are mediated by a particular good utilized as a means of exchange. Agents are requested to be “utilities' improvers” and transfer of goods can take place under disequilibrium conditions by means of some rationing mechanism. In the second part of the paper, section 3 and 4, an extension of the original model is proposed where the good acting as money is desired not only for its physical characteristics, but also for its “institutional” form. We show that this kind of “preference for liquidity” leads on the one hand to a natural extension of the analytical results, (convergence of the economical process can still be proved), on the other hand it introduces a set of accessible points in the state-space which properly contains the original set of market equilibria. This result suggests a few observations, section 5, regarding the appearance of a “store of value” effect for any commodity utilized as a means of exchange as far as agents' demand takes into account its institutional role.
Notes:
Abstract In questa nota si propone una estensione del modello dinamico di economia monetaria di puro scambio sviluppato da D. Friedman in un lavoro recente [5]. Lo schema analitico mantiene il carattere non deterministico e non tâtonnement introdotto da S. Smale nello studio di processi transattivi [9]. Ammettendo che la merce usata nel sistema come moneta sia richiesta dagli agenti non solo sulla base delle sue caratteristiche fisiche, ma anche a partire dal ruolo istituzionale assolto, si prova che il processo economico converge ad una varietà di configurazioni finali che è strettamente più ampia dell'insieme degli equilibri walrasiani.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF02085245
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