On the Local Interaction of Money and Credit

Yi Jin () and Ted Loch Temzelides

Review of Economic Dynamics, 2004, vol. 7, issue 1, 143-156

Abstract: We study the coexistence of monetary and credit transactions in a model where exchange is decentralized. Agents belong to different locations which are informationally separated. The equilibrium mix of monetary and credit transactions is characterized as a function of the frequency of meetings among agents from different locations, Credit transactions take place only among a small set of 'neighbors.' Monetary trades emerge only if interactions with faraway locations are sufficiently frequent. Even in that case, trades among nearby locations remain non-monetized. (Copyright: Elsevier)

Keywords: Money and Credit; Local Matching (search for similar items in EconPapers)
JEL-codes: E4 E5 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (10)

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Related works:
Working Paper: On the Local Interaction of Money and Credit (1999)
Working Paper: On the Local Interaction of Money and Credit (1998)
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DOI: 10.1016/S1094-2025(03)00055-3

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