Taub, B. (1985) Equilibrium traits of durable commodity money. Journal of Banking and Finance, 9(1), pp. 5-34. (doi: 10.1016/0378-4266(85)90060-3)
Full text not currently available from Enlighten.
Abstract
<p>A dynamic model of utility-maximizing agents explains why scarce, durable commodities are typically monetary. The model provides quantitative criteria for distinguishing between monetary and non-monetary durables, and is also used to analyze symmetallic equilibria.</p> <p>The model is then extended to analyze commodity-backed paper money. It is demonstrated that the backing generates trust in the paper money in the dynamic-consistency sense. The model predicts regular devaluations as an equilibrium phenomenon, but finds such behavior to be efficient. Finally, the results are integrated to make a technical point about dynamic models of pure fiat money.</p>
Item Type: | Articles |
---|---|
Status: | Published |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | Taub, Professor Bart |
Authors: | Taub, B. |
College/School: | College of Social Sciences > Adam Smith Business School > Economics |
Journal Name: | Journal of Banking and Finance |
Publisher: | Elsevier Ltd. |
ISSN: | 0378-4266 |
University Staff: Request a correction | Enlighten Editors: Update this record