On ‘Rusting’ Money Silvio Gesell’s Schwundgeld Reconsidered. Part II: The Long Run

Günther Rehme
Additional contact information
Günther Rehme: TU Darmstadt

Review of Economic Analysis, 2024, vol. 16, issue 2, 133-174

Abstract: "Silvio Gesell argued that ‘rusting’ money is economically and socially beneficial; that claim has often been contended. In Part II of the paper, I concentrate on the long-run implications of his ideas. I show that introducing money depreciation in isolation may be economically non-beneficial in typical long-run equilibrium. But money depreciation, when coupled with expansionary monetary policy, is a necessary condition for a positive Mundell-Tobin effect on long-run real variables and so creates wealth in the model. It is found that this also holds in the transition to the long-run equilibrium. Hence, the spirit of Gesell’s hypotheses can be verified for a plausible, long-run environment as well, and may, thus, be relevant for long-run economic policy problems."

Keywords: "Economic Performance; Depreciating Money; Zero Lower Bound; Demonetization; Love of Wealth" (search for similar items in EconPapers)
JEL-codes: E5 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://openjournals.uwaterloo.ca/index.php/rofea/article/view/4945/5978 (application/pdf)

Related works:
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:ren:journl:v:16:y:2024:i:2:p:133-174

DOI: 10.15353/rea.v16i2.4945

Access Statistics for this article

Review of Economic Analysis is currently edited by Dr. Jerzy (Jurek) Konieczny

More articles in Review of Economic Analysis from Digital Initiatives at the University of Waterloo Library
Bibliographic data for series maintained by Dr. Jerzy (Jurek) Konieczny ().