Fiat money in the Kiyotaki-Wright model

S. Rao Aiyagari; Neil Wallace

doi:10.1007/BF01212470

Fiat money in the Kiyotaki-Wright model

S. Rao Aiyagari
, Neil Wallace

Economics

Research output: Contribution to journal › Article › peer-review

27 Scopus citations

Abstract

We study versions of the Kiyotaki-Wright (1989) model with fiat money and show that: (1) The use of a low storage cost fiat money may be necessary for specialization and trade, (2) there can be valued fiat money steady states which are indeterminate, (3) there are no nontrivial steady-states in which all trades consist of fiat money for goods, (4) fiat money may be valued even if it is not the least costly-to-store object, and lastly, (5) two fiat monies with different storage costs may both be valued.

Original language	English (US)
Pages (from-to)	447-464
Number of pages	18
Journal	Economic Theory
Volume	2
Issue number	4
DOIs	https://doi.org/10.1007/BF01212470
State	Published - Dec 1992

All Science Journal Classification (ASJC) codes

Economics and Econometrics

Access to Document

10.1007/BF01212470

Cite this

@article{647db9eb8f97427ba614c66acb1dcddc,

title = "Fiat money in the Kiyotaki-Wright model",

abstract = "We study versions of the Kiyotaki-Wright (1989) model with fiat money and show that: (1) The use of a low storage cost fiat money may be necessary for specialization and trade, (2) there can be valued fiat money steady states which are indeterminate, (3) there are no nontrivial steady-states in which all trades consist of fiat money for goods, (4) fiat money may be valued even if it is not the least costly-to-store object, and lastly, (5) two fiat monies with different storage costs may both be valued.",

author = "Aiyagari, \{S. Rao\} and Neil Wallace",

year = "1992",

month = dec,

doi = "10.1007/BF01212470",

language = "English (US)",

volume = "2",

pages = "447--464",

journal = "Economic Theory",

issn = "0938-2259",

publisher = "Springer New York",

number = "4",

}

TY - JOUR

T1 - Fiat money in the Kiyotaki-Wright model

AU - Aiyagari, S. Rao

AU - Wallace, Neil

PY - 1992/12

Y1 - 1992/12

N2 - We study versions of the Kiyotaki-Wright (1989) model with fiat money and show that: (1) The use of a low storage cost fiat money may be necessary for specialization and trade, (2) there can be valued fiat money steady states which are indeterminate, (3) there are no nontrivial steady-states in which all trades consist of fiat money for goods, (4) fiat money may be valued even if it is not the least costly-to-store object, and lastly, (5) two fiat monies with different storage costs may both be valued.

AB - We study versions of the Kiyotaki-Wright (1989) model with fiat money and show that: (1) The use of a low storage cost fiat money may be necessary for specialization and trade, (2) there can be valued fiat money steady states which are indeterminate, (3) there are no nontrivial steady-states in which all trades consist of fiat money for goods, (4) fiat money may be valued even if it is not the least costly-to-store object, and lastly, (5) two fiat monies with different storage costs may both be valued.

UR - https://www.scopus.com/pages/publications/0000029399

UR - https://www.scopus.com/pages/publications/0000029399#tab=citedBy

U2 - 10.1007/BF01212470

DO - 10.1007/BF01212470

M3 - Article

AN - SCOPUS:0000029399

SN - 0938-2259

VL - 2

SP - 447

EP - 464

JO - Economic Theory

JF - Economic Theory

IS - 4

ER -

Fiat money in the Kiyotaki-Wright model

Abstract

All Science Journal Classification (ASJC) codes

Access to Document

Other files and links

Fingerprint

Cite this