General Equilibrium Models of Monetary Economies

General Equilibrium Models of Monetary Economies

Studies in the Static Foundations of Monetary Theory

1st Edition - February 28, 1989

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  • Editor: Ross M. Starr
  • eBook ISBN: 9781483273518

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Description

General Equilibrium Models of Monetary Economies: Studies in the Static Foundations of Monetary Theory is a collection of essays that addresses the integration of the theory of money and the theory of value by using a mathematical general equilibrium theory. The papers discuss monetary theory, microeconomic theory, bilateral trade, transactions costs, intertemporal allocation, and the value of money. The Arrow-Debreu model of Walrasian general equilibrium theory provides a framework to represent money as a device for facilitating trade among economic agents without the use of money as a medium of exchange and as a store of value. The essays analyze the rationale for using a medium of exchange, for using a store of value, and for holding of idle balances in equilibrium. The essays show that by explicit modeling of the structure and difficulties of trade, a powerful class of models which deny money and finance a role in the economy, has by itself shown to have provided the foundation for the structures of trade. The collection will prove helpful for economists, statistician, mathematicians, students or professors of economics and business.

Table of Contents


  • I. Monetary Theory and Microeconomic Theory

    1. Money in Formal General Equilibrium Analysis

    2. J. R. Hicks (1935), "A Suggestion for Simplifying the Theory of Money," Economica, v. II, n. 5, pp. 1-19

    3. J. Tobin (1961), "Money, Capital, and Other Stores of Value", American Economic Review, v. LI, n. 2, pp. 26-37

    II. Bilateral Trade

    1 . Classical Writers

    4. Bilateral Trade: Money as a Medium of Exchange

    5. A. Smith (1776), "Of the Origin and Use of Money," An Inquiry Into the Nature and Causes of The Wealth of Nations, Book I, chapter IV

    6. W. S. Jevons (1875), Money and the Mechanism of Exchange, Chapters I, II, III

    7. K. Menger (1892), "On the Origin of Money," Economic Journal, v. II, pp. 239-255

    2. Non-monetary Non-market Trade

    8. A. M. Feldman (1973), "Bilateral Trading Processes, Pairwise Optimality, and Pareto Optimality," Review of Economic Studies, v. XL, n. 4, pp. 463-474

    9. S. M. Goldman and R. M. Starr, (1982) "Pairwise, t-wise, and Pareto Optimalities" Econometrica, v. 50, n. 3, pp. 593-606

    3. Bilateral Market Trade

    10. J. M. Ostroy (1973), "T h e Informational Efficiency of Monetary Exchange," American Economic Review, v. LXIII, n. 4, pp. 597-610

    11. R. M. Starr (1972), "The Structure of Exchange in Barter and Monetary Economies," Quarterly Journal of Economics, v. LXXXVI, pp. 290-302

    12. J. M. Ostroy and R. M. Starr (1974), "Money and the Decentralization of Exchange," Econometrica, v. 42. n. 6, pp. 1093-1113

    13. R. M. Starr (1976), "Decentralized Non-monetary Trade," Econometrica, v. 44, n. 5, pp. 1087-1089

    III. Transaction Costs and Intertemporal Allocation

    14. Transaction Costs and Intertemporal Allocations: Money as a Store of Value

    1. Transaction Costs in a One-Period Model

    15. D. K. Foley, (1970), "Economic Equilibrium with Costly Marketing," Journal of Economic Theory, v. 2, n. 3, pp. 276-291

    2. Efficient Intertemporal Allocation

    16. F. H. Hahn, (1971), "Equilibrium with Transaction Costs," Econometrica, v. 39, n. 3, pp. 417-439

    17. D. Starrett (1973), "Inefficiency and the Demand for 'Money' in a Sequence Economy," Review of Economic Studies, v. XL, n. 4, pp. 437-448. (Includes: R. M. Starr (1978), "Money in a Sequence Economy: A Correction," Review of Economic Studies, v. XLV, n. 2, p. 391.)

    3. Intertemporal Market Equilibrium with Transaction Costs

    18. M. Kurz (1974), "Equilibrium in a Finite Sequence of Markets with Transaction Cost," Econometrica, v. 42. n. 1, pp. 1-20

    19. W. P. Heller and R. M. Starr (1976), "Equilibrium with Non-convex Transactions Costs: Monetary and Nonmonetary Economies, "Review of Economic Studies, v. XLIII, n. 2, pp. 195-215

    IV. The Value of Money

    20. Determinacy of the Price Level, Positivity of the Price of Money

    21. F. H. Hahn (1966), "On Some Problems of Proving the Existence of an Equilibrium in a Monetary Economy," in The Theory of Interest Rates, F. H. Hahn and F. P. R. Brechling, eds., London: Macmillan

    22. Grandmont, J. M. (1974), "On the Short-Run Equilibrium in a Monetary Economy," in Allocation under Uncertainty: Equilibrium and Optimality, J. H. Dreze, ed., New York: John Wiley & Sons, pp. 213-228

    23. R. M. Starr, (1974), "The Price of Money in a Pure Exchange Monetary Economy with Taxation," Econometrica, v. 42, n. 1, pp. 45-54

    V. Conclusion

    24. Open Questions: A Research Agenda

    25. Conclusion

    Bibliography

Product details

  • No. of pages: 364
  • Language: English
  • Copyright: © Academic Press 1989
  • Published: February 28, 1989
  • Imprint: Academic Press
  • eBook ISBN: 9781483273518

About the Editor

Ross M. Starr

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