Gold, Liquidity and Secured Loans in a Multi-Stage Economy. Part II. Many Durables, Land and Gold
In a previous paper (Shubik and Yao, 1988) we examined a multistage exchange economy with m perishable goods and one inﬁnitely durable gold used as money. we considered an economy without credit and one with one hundred percent secured loans. In this paper we consider an economy with m(1) goods which have ﬁnite lives and m(2) goods which are of inﬁnite durability. Historically the two durables which have been prominent in economic activity have been gold and land, although one might wish to include platinum and some other items.
Shubik, Martin and Yao, Shuntian, "Gold, Liquidity and Secured Loans in a Multi-Stage Economy. Part II. Many Durables, Land and Gold" (1989). Cowles Foundation Discussion Papers. 1148.