المؤلفون: Zhiping Xie

المصدر: SSRN Electronic Journal.

مصطلحات موضوعية: TheoryofComputation_MISCELLANEOUS, Transaction cost, Endogenous money, General equilibrium theory, Partial equilibrium, Fiat money, TheoryofComputation_GENERAL, Monetary economics, Microeconomics, symbols.namesake, Nash equilibrium, Money illusion, symbols, Economics, Game theory

الوصف: In an infinite-time decentralized sequence economy, agents use fiat money to bridge markets as if they make trades in a centralized economy, to avoid huge transaction cost that all agents’ going together must incur. The model in this paper formulates the process how agents decide the fiat money’s nominal value. Three new concepts are suggested – plan of choices, Temporarily Partial Equilibrium and Intra-Date Equilibrium; and this paper proves the existence of these two equilibriums. Then, based on the equilibrium prices and allocations of the corresponding infinite-time Walrasian economy, this paper proves that all agents’ accepting fiat money with unchanged nominal value is a Nash equilibrium, which guarantees fiat money’s essentiality.

الوصول الحر: https://explore.openaire.eu/search/publication?articleId=doi_________::0cb492d97b1be70673b6b01feb13831eTest
https://doi.org/10.2139/ssrn.1767565Test

المؤلفون: Zhiping Xie

المصدر: SSRN Electronic Journal.

مصطلحات موضوعية: Transaction cost, symbols.namesake, Endogenous money, Sequential game, General equilibrium theory, Process (engineering), Nash equilibrium, Fiat money, symbols, Competitive economy, Economics, TheoryofComputation_GENERAL, Monetary economics

الوصف: This paper mainly addresses why people are rationally willing to cooperate with one another to accept fiat money from the perspective of decentralized sequential general equilibrium framework by using dynamic game to determine agents’ expectation of nominal prices in unrevealed future. The model formulates the process that agents determine fiat money’s nominal value competitively in an infinite-time decentralized sequence economy where agents use fiat money to bridge markets to avoid the huge transaction cost. It is proved that all agents’ expectation with fiat money’s unchanged nominal value is self-fulfilling with a Nash Equilibrium so as to guarantee fiat money’s essentiality.

الوصول الحر: https://explore.openaire.eu/search/publication?articleId=doi_________::d9f361558a1009ec600e6eea53e71169Test
https://doi.org/10.2139/ssrn.1935730Test