Fiat Money in a Search Theoretical Model with Generalist Consumers
نویسندگان
چکیده
† I thank Randall Wright and an anonymous referee for very useful comments and suggestions. All errors are mine. Abstract There are two general ways in which the role of fiat money has been introduced in the standard monetary search-theoretical model. The first is to bring in the model a fiat object with different intrinsic properties. The second is to introduce a centralized institution that favors the use of fiat money through specific transaction policies. We carry out a similar exercise for a modified version of the model in which agents have a different structure of preferences. We characterize the conditions for which there exist equilibria with circulating fiat money and evaluate the main differences with the results derived from the standard model.
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تاریخ انتشار 2004