Article
Licensed
Unlicensed
Requires Authentication
Money Creation in a Random Matching Model
-
Alexei Deviatov
Published/Copyright:
December 20, 2006
I study money creation in versions of the Trejos-Wright (1995) and Shi (1995) models with indivisible money and individual holdings bounded at two units. I work with the same class of policies as in Deviatov and Wallace (2001), who study money creation in that model. However, I consider an alternative notion of implementability - the ex ante pairwise core. I compute a set of numerical examples to determine whether money creation is beneficial. I find beneficial effects of money creation if individuals are sufficiently risk averse (obtain sufficiently high utility gains from trade) and impatient.
Published Online: 2006-12-20
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
You are currently not able to access this content.
You are currently not able to access this content.
Articles in the same Issue
- Frontiers Article
- 10.2202/1534-6021.1320
- Topics Article
- The Spirit of Capitalism and Asset Pricing: An Empirical Investigation
- Structural Factor-Augmented VARs (SFAVARs) and the Effects of Monetary Policy
- How Would an Appreciation of the Renminbi Affect the U.S. Trade Deficit with China?
- Multi-product Firms, R&D, and Growth
- Money Creation in a Random Matching Model
- Stochastic Capital Depreciation and the Co-movement of Hours and Productivity
- The Welfare Cost of Business Cycles in an Economy with Nonclearing Markets
- The Role of Government Commitment for Environmental Policy and Capital Movements
Articles in the same Issue
- Frontiers Article
- 10.2202/1534-6021.1320
- Topics Article
- The Spirit of Capitalism and Asset Pricing: An Empirical Investigation
- Structural Factor-Augmented VARs (SFAVARs) and the Effects of Monetary Policy
- How Would an Appreciation of the Renminbi Affect the U.S. Trade Deficit with China?
- Multi-product Firms, R&D, and Growth
- Money Creation in a Random Matching Model
- Stochastic Capital Depreciation and the Co-movement of Hours and Productivity
- The Welfare Cost of Business Cycles in an Economy with Nonclearing Markets
- The Role of Government Commitment for Environmental Policy and Capital Movements
