Title

A Strategic Market Game with Seigniorage Costs of Fiat Money

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.

This document is currently not available here.

Share

COinS