Monetary Trading: An Optimal Exchange System

We show that monetary trading is simple, self-enforcing, symmetric, and irreducible in a natural framework. Furthermore, we will show that the utility for each economic agent is at least as big under the monetary system as under any other simple, self-enforcing, symmetric, and irreducible trading system of the same complexity. Thus, we rationalize the monetary nature of real-world trade as being an efficient way to achieve those properties.

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Year of publication:	2002
Authors:	Carmona, Guilherme
Institutions:	Faculdade de Economia, Universidade Nova de Lisboa

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Series:	FEUNL Working Paper Series.
Type of publication:	Book / Working Paper
Language:	English
Notes:	28 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005600455