Silvio Gesell hypothesized that money depreciation is economically and socially beneficial, an idea that have often been contended. Here I analyze the spirit of his claims in a Sidrauski model in which households additionally have a 'love of wealth'motive. The analysis is presented in two parts,...

Silvio Gesell argued that 'rusting' money is economically and socially beneficial; that claim has often been contended. In Part II of the paper, I concentrate on the long-run implications of his ideas. I show that introducing money depreciation in isolation may be economically non-beneficial in...