Money is an information system to value, record, and track economic transactions. It is an information system with minimal semantics and centralized control. Consequently, the monetary system fails to support many transactions directly, but requires intermediaries such as banks, brokers, insurance companies, credit card companies, and investment firms, increasing transaction costs greatly. Sema...

The study aimed at showing how to create and release cryptocurrency, based on which one can introduce a new generation of this money that can continue its life in the quantum computers space and study whether cryptocurrency could be controlled or the rules should be rewritten in line with new technology. Regarding this, we showed the evolution of money and its uses in economic relations. Accord...

A prediction market is a place where individuals can wager on the outcomes of future events. Those who forecast the outcome correctly win money, and if they forecast incorrectly, they lose money. People value money, so they are incentivized to forecast such outcomes as accurately as they can. Thus, the price of a prediction market can serve as an excellent indicator of how likely an event is to...

This paper incorporates a distortionary tax into a microfoundations of money framework and revisits the optimum quantity of money. The money constraint in the decentralized market plays a key role in the optimal policy. Only if the constraint is binding can fiscal policy alter the agents’ surplus shares; monetary, but not fiscal, policy affects the agents’ bargaining position, leaving a special...

We analyze the stability of monetary regimes in an economy where fiat money is endogenously created by the government, information about its value is imperfect, and learning is decentralized. We show that monetary stability depends crucially on the speed of information transmission in the economy. Our model generates a dynamic on the acceptability of fiat money that resembles historical account...

The wisdom of the crowd is a valuable asset in today’s society. It is not only important in predicting elections but also plays an essential rôle in marketing and the financial industry. Having a trustworthy source of opinion can make forecasts more accurate and markets predictable. Until now, a fundamental problem of surveys is the lack of incentives for participants to provide accurate inform...

By introducing costly centralized exchange into a traditional search theoretic decentralized market, where money can mediate trade, we show private money can arise endogenously because it is pro…table for the centralized intermediary to satisfy the demand for money that will naturally arise. Trading money to another agent for a good, rather than trading good for good through the centralized int...

The competitive market structure of a decentralized economy is converted into a self-policing system treating the bureaucracy and enforcement of the legal system endogenously. In particular we consider money systems as constructs to make agents’ economic strategies predictable from knowledge of their preferences and endowments, and thus to support coordinated resource production and distributio...

Two models are presented of real-time exchange and price adjustment for a system of interrelated markets mediated by trade specialists. The first (MBM) features partially decentralized barter exchange in which specialists continuously maintain inventories and periodically adjust prices. A 'correspondence principle' yields existence and efficiency of (steadystate) equilibrium. Local stability fo...

We compare allocations sustained by credit with allocations sustained by bank notes (inside money) in a search model with decentralized trade and limited monitoring. We demonstrate that there exists a credit arrangement that is superior to inside money. However, in contrast with inside money, this arrangement is not robust to an expansion of trade that is not accompanied by an adequate increase...