Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18003
Authors: 
Sissoko, Carolyn
Year of Publication: 
2007
Citation: 
[Journal:] Economics: The Open-Access, Open-Assessment E-Journal [Volume:] 1 [Issue:] 2007-5 [Pages:] 1-29 [DOI/URN:] doi:10.5018/economics-ejournal.ja.2007-5
Abstract: 
We consider an environment where the general equilibrium assumption that every agent buys and sells simultaneously is relaxed. We show that fiat money can implement a Pareto optimal allocation only if taxes are type-specific. We then consider intermediated money by assuming that financial intermediaries whose liabilities circulate as money have an important identifying characteristic: they are widely viewed as default-free. The paper demonstrates that default-free intermediaries who issue deposit accounts with credit lines to consumers can resolve the monetary problem and make it possible for the economy to reach a Pareto optimum.
Subjects: 
Fiat Money
Cash-in-advance
Financial Intermediation
JEL: 
E5
G2
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by-nc/2.0/de/deed.en
Document Type: 
Article

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