| Author: | Li, Y. Wright, R. |
| Title: | Government transaction policy, media of exchange, and prices |
| Journal: | Journal of Economic Theory
1998 : AUG, VOL. 81:2, p. 290-313 |
| Index terms: | EQUILIBRIUM THEORY MONETARY THEORY MODELS |
| Language: | eng |
| Abstract: | In the paper, government transaction policies in search-theoretic models of money are studied. Government is modelled as a subset of agents, who are subject to the same random matching technology and other constraints as are private agents, but who behave in exogenous way regarding which objects they accept in trade and at what price. The objective is to see how these policies affect private agents' strategies, and hence the set of equilibria. How the effects depend on factors like the size of government, the intrinsic properties of money, and the availability and efficacy of substitutes like barter or foreign currency is analyzed. |
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