Money Mining and Price Dynamics

Michael Choi and Guillaume Rocheteau
Additional contact information
Guillaume Rocheteau: University of California, Irvine

No 74, 2019 Meeting Papers from Society for Economic Dynamics

Abstract: We develop a random-matching model where the private production of money results from an occupation choice. While there exists a unique perfect-foresight equilibrium where the value of money reaches a steady state, there is a continuum of equilibria where the value of money inflates and bursts. In the early stage of the transition, money is not used as means of payment and its value grow at a rate equal or larger than the rate of time preference. We study divisible, indivisible, interest-bearing, and competing monies, the role of mining to con firm trades, and the implementation of the constrained-efficient allocation.

Date: 2019
New Economics Papers: this item is included in nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2019/paper_74.pdf (application/pdf)

Related works:
Journal Article: Money Mining and Price Dynamics (2021)
Working Paper: Money Mining and Price Dynamics (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed019:74

Access Statistics for this paper

More papers in 2019 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().