On the marginal utility of fiat money: insurmountable circularity or not?

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Tác giả: Michael Reiss

Ngôn ngữ: eng

Ký hiệu phân loại: 332.42 Monetary standards

Thông tin xuất bản: 2021

Mô tả vật lý:

Bộ sưu tập: Metadata

ID: 166492

Comment: Comments are welcome!The question of how a pure fiat currency is enforced and comes to have a non-zero value has been much debated \cite{10.2307/2077948}. What is less often addressed is, in the case where the enforcement is taken for granted and we ask what value (in terms of goods and services) the currency will end up taking. Establishing a decentralised mechanism for price formation has proven a challenge for economists: "Since no decentralized out-of-equilibrium adjustment mechanism has been discovered, we currently have no acceptable dynamical model of the Walrasian system" (Gintis 2006). In his paper, Gintis put forward a model for price discovery based on the evolution of the model's agents, i.e. "poorly performing agents dying and being replaced by copies of the well performing agents." It seems improbable that this mechanism is the driving force behind price discovery in the real world. This paper proposes a more realistic mechanism and presents results from a corresponding agent based model.
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