Money creation process in a random redistribution model

Siyan Chen, Yougui Wang, Keqiang Li and Jinshan Wu

Physica A: Statistical Mechanics and its Applications, 2014, vol. 394, issue C, 217-225

Abstract: In this paper, the dynamical process of money creation in a random exchange model with debt is investigated. The money creation kinetics are analyzed by both the money-transfer matrix method and the diffusion method. From both approaches, we attain the same conclusion: the source of money creation in the case of random exchange is the agents with neither money nor debt. These analytical results are demonstrated by computer simulations.

Keywords: Money creation; Random exchange model; Diffusion process; Econophysics (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:394:y:2014:i:c:p:217-225

DOI: 10.1016/j.physa.2013.09.036

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