Power Theory of Exchange and Money

Money in a Theory of Exchange

“In primitive traffic the economic man is awaking but very gradually to an understanding of the economic advantages to be gained by exploitation of existing opportunities of exchange...Consider how seldom it is the case, that a commodity owned by somebody is of less value in use than another commodity owned by someone else! And for the latter just the opposite relation is the case. But how much...

The theory of fiat money and private money as alternative media of exchange

Article history: Received 8 September 2007 Received in revised form 9 April 2008 Accepted 17 July 2008 Available online 7 August 2008 A random-matching model with a clearinghouse is constructed to investigate the impact of privatemoney on economic efficiency and social welfare in threemonetary regimes. A subset of agents, called bankers, whose credit histories are recorded by the clearinghouse,...

The Uses of Money: Money in the Theory of an Exchange Economy

Money and Power

Political scientists are fond of observing that "power is to us what money is to the economist: the medium via which transactions are observed and measured."' The analogy sometimes implies, as it does in this quotation, that money and power perform similar social functions. At other times it seems to mean that political scientists ought to spend as much time thinking about power as economists d...

THREE ESSAYS ON THE THEORY OF MONEY AND FINANCIAL INSTITUTIONS ESSAY 2: THE EXCHANGE ECONOMY, MONEY AND MARKETS By

This essay is the second of three. The first is nontechnical and in part autobiograhpical describing the evolution of my approach to developing a micro economic theory of money and financial insttutions. This essay is devoted to a mathematical sketch of a closed economic exchange system with general equilibrium GE and rational expectations RE viewed game theoretically. It squeezes the last drop...