Doing Without Money: A Critical Assessment of Woodford's Analysis

Colin Rogers
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Colin Rogers: School of Economics, University of Adelaide

No 2004-05, School of Economics and Public Policy Working Papers from University of Adelaide, School of Economics and Public Policy

Abstract: Woodford employs an inter-temporal general equilibrium model to examine the properties of the monetary system as it evolves form the use of a physical medium of exchange to an electronic medium. He presents a structure in which cash as a means of payment can be made to vanish at the limit but where he claims the price level remains determinate. It is shown that Woodford's analysis involves fundamental but still widespread conceptual and methodological errors. His general equilibrium model does not map into the world of electronic money and his analysis has no implications for the art of central banking.

Keywords: electronic money; cashless limit; Hahn property; accounting systems of exchange (search for similar items in EconPapers)
JEL-codes: B40 E40 E42 E50 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2004
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:adl:wpaper:2004-05

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