Document Type
Discussion Paper
Publication Date
3-1-1993
CFDP Number
1043
CFDP Revision Date
2001-01-01
CFDP Pages
16
Abstract
A model that includes the cost of producing money is presented and the nature of the inefficient equilibria in the model are examined. It is suggested that if one acknowledges that transactions are a form of production, which requires the consumption resources, then the concept of Pareto optimality is inappropriate for assessing efficiency. Instead it becomes necessary to provide an appropriate comparative analysis of alternative transactions mechanisms in the appropriate context.
Recommended Citation
Shubik, Martin and Tsomocos, Dimitrios P., "A Strategic Market Game with Seigniorage Costs of Fiat Money" (1993). Cowles Foundation Discussion Papers. 1286.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1286