Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/328163 
Authors: 
Year of Publication: 
2024
Citation: 
[Journal:] Review of Economic Analysis (REA) [ISSN:] 1973-3909 [Volume:] 16 [Issue:] 2 [Year:] 2024 [Pages:] 133-174
Publisher: 
International Centre for Economic Analysis (ICEA), Waterloo (Ontario)
Abstract: 
Silvio Gesell argued that 'rusting' money is economically and socially beneficial; that claim has often been contended. In Part II of the paper, I concentrate on the long-run implications of his ideas. I show that introducing money depreciation in isolation may be economically non-beneficial in a typical long-run equilibrium. But money depreciation, when coupled with expansionary monetary policy, is a necessary condition for a positive Mundell-Tobin effect on long-run real variables and so creates wealth in the model. It is found that this also holds in the transition to the long-run equilibrium. Hence,the spirit of Gesell's hypotheses can be verified for a plausible, long-run environment as well, and may, thus, be relevant for long-run economic policy problems.
Subjects: 
Economic Performance
Depreciating Money
Zero Lower Bound
Demonetization
Love of Wealth
JEL: 
E1
E5
O4
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.