Publication details

Double Coincidence of Wants and the Essentiality of Money

Authors

STANĚK Rostislav

Year of publication 2010
Type Article in Proceedings
Conference New Economic Challenges 2010
MU Faculty or unit

Faculty of Economics and Administration

Citation
Web http://is.muni.cz/do/1456/sborniky/10407573/NewEconomicChallenges2010.pdf
Field Economy
Keywords Money; Double Coincidence of Wants; Search models; Infinite games
Description This paper is focused on the microeconomic foundation of the theory of money. I argue that the absence of double coincidence of wants per se is not able to explain the existence of money. The argument has two parts. First, I argue that existing models without double coincidence of wants include also other frictions. Second, I show that double coincidence of wants is neither sufficient nor necessary condition for the essentiality of money. Game theory is applied for this purpose. Finally the paper provides indirect support for the claim that money is a record-keeping device that solves the problem of imperfect monitoring.

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