Gold, Fiat and Credit. An Elementary Discussion of Commodity Money, Fiat Money and Credit

@article{citeulike:2352767, abstract = {In this paper we present a series of models, all within the context of a simple two-good economy, which bring out the distinctions between the different types of money and financial institutions. The models emphasize the physical properties of the economic goods, moneys, and trading systems. In Part 1 of the paper, we covered models in which the money is a consumable storable; here in Part 2 we consider economies using durable money, fiat money, or credit. Under this framework we are able to successfully contrast the role of private money lenders, banks, bilateral credit systems, and credit clearinghouses. We are also able to model the importance of the bankruptcy or default penalty in supporting the use of fiat.}, author = {Quint, Thomas and Shubik, Martin and Cowles}, citeulike-article-id = {2352767}, journal = {Social Science Research Network Working Paper Series}, keywords = {2004, geld, money}, month = {April}, posted-at = {2008-02-08 09:45:58}, priority = {2}, title = {Gold, Fiat and Credit. An Elementary Discussion of Commodity Money, Fiat Money and Credit}, url = {http://ssrn.com/abstract=546682}, year = {2004} }

TY - JOUR ID - citeulike:2352767 L3 - citeulike-article-id:2352767 N2 - In this paper we present a series of models, all within the context of a simple two-good economy, which bring out the distinctions between the different types of money and financial institutions. The models emphasize the physical properties of the economic goods, moneys, and trading systems. In Part 1 of the paper, we covered models in which the money is a consumable storable; here in Part 2 we consider economies using durable money, fiat money, or credit. Under this framework we are able to successfully contrast the role of private money lenders, banks, bilateral credit systems, and credit clearinghouses. We are also able to model the importance of the bankruptcy or default penalty in supporting the use of fiat. JF - Social Science Research Network Working Paper Series TI - Gold, Fiat and Credit. An Elementary Discussion of Commodity Money, Fiat Money and Credit KW - 2004 KW - geld KW - money AU - Quint, Thomas AU - Shubik, Martin AU - Cowles PY - 2004/April// UR - http://ssrn.com/abstract=546682 ER -