Invisible Hand Processes and the Theory of Money

Hillel Steiner ()
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Hillel Steiner: University of Manchester

Rationality, Markets and Morals, 2013, vol. 4, issue 67

Abstract: This paper explores, and rejects, the plausibility—advanced by a number of economists and recently re-affirmed by Robert Nozick—of employing an ‘invisible hand explanation’ to account for the existence of money as a medium of exchange. It argues that money is not necessarily more efficient than barter as a means of effecting a multiplicity of desired exchanges, and that its use is not a dominant strategy under standard theoretical conditions of individual rational choice.

Keywords: barter; double coincidence of wants; asset value; Prisoner’s Dilemma; invisible hand. (search for similar items in EconPapers)
JEL-codes: B D (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:rmm:journl:v:4:y:2013:i:67

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