A Model of Indivisible Commodity Money with Minting and Melting
نویسندگان
چکیده
Introduction Focus: Early (800-1500) commodity money systems (coins) Introduction Stylized facts about evolution of commodity money systems: 1 Started with a single silver coin Initially same size across countries Over time, debased in some countries, not debased in others 2 Next added a second silver coin If original silver coin small, then new silver coin larger If original silver coin large, then new silver coin smaller 3 Much larger gold coin added even later
منابع مشابه
A Model of Commodity Money with Minting and Melting∗
We construct a random matching model of a monetary economy with commodity money in the form of potentially different types of silver coins that are distinguishable by the quantity of metal they contain. The quantity of silver in the economy is assumed to be fixed, but agents can mint and melt coins. Coins yield no utility, but can be traded. Uncoined silver yields direct utility to the holder. ...
متن کاملA model of commodity differentiation with indivisibilities and production
This paper presents an existence theorem in a general equilibrium model of a production economy with commodity differentiation and indivisibilities. The model is motivated by the existence of markets with indivisible commodities, such as the markets for automobiles and computers. As is standard in the literature, the space of commodity characteristics is described by a compact metric space and ...
متن کاملExistence of an Equilibrium in a General Competitive Exchange Economy with Indivisible Goods and Money
We introduce a general competitive exchange economy with indivisible goods and money. There are finitely many agents and finitely many indivisible goods. Each agent is initially endowed with several units of each indivisible good and certain amount of money. Money is treated as a perfectly divisible good. The agents’ preferences depend on the bundle of indivisible goods and the quantity of mone...
متن کاملSimulation of Long-term Returns with Stochastic Correlations
This paper focuses on a nonlinear stochastic model for financial simulation and forecasting based on assumptions of multivariate stochastic correlation, with an application to the European market. We present in particular the key elements of a structured hierarchical econometric model that can be used to forecast financial and commodity markets relying on statistical and simulation methods. The...
متن کاملEffects of U.S. Macroeconomic Shocks on International Commodity Prices: Emphasis on Price and Exchange Rate Pass-through Effects
Using a structural VAR with block exogeneity, diagonality and identifying restrictions, this paper analyzes: first, the macroeconomic linkages among the oil price, U.S. output, interest rate, money supply, general price level and exchange rate and second, the relationships of the macroeconomic variables with the price indices of ten international nonfuel commodity groups. By assuming the block ...
متن کامل