Why inside money matters
(2007)
Journal Article
Sissoko, C. (2007). Why inside money matters. Journal of Money, Credit and Banking, 39(8), 2097-2105. https://doi.org/10.1111/j.1538-4616.2007.00100.x
This note observes that in a simple infinite horizon economy with heterogeneous endowments and a cash-in-advance constraint fiat money can be used to implement a Pareto optimum only with type-specific taxation. By contrast, if credit contracts are en... Read More about Why inside money matters.