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- W2188141869 abstract "In a trading post model of N commodities there are 1 N(N 1) commodity-pairwise trading posts. Taxation — and fiat money’s guaranteed value in payment of taxes — explains the positive equilibrium value of fiat money. A bid/ask spread at each trading post reflects transaction costs incurred at the post. Government’s large scale interacting with scale economies in transaction costs make fiat money the low-transaction-cost medium of exchange, resulting in fiat money being the unique medium of exchange in general equilibrium. Fiat money equilibrium is characterized by all trade concentrated on the trading posts trading the N commodities for fiat money; the remaining barter trading posts are priced but inactive in equilibrium." @default.
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- W2188141869 date "2015-01-01" @default.
- W2188141869 modified "2023-09-27" @default.
- W2188141869 title "Government-Endorsed Fiat Money: Natural Monopoly in a Trading Post" @default.
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