DOUBLE COINCIDENCE OF WANTS AND THE ESSENTIALITY OF MONEY
DOUBLE COINCIDENCE OF WANTS AND THE ESSENTIALITY OF MONEY

Author(s): Rostislav Staněk
Subject(s): Micro-Economics, Evaluation research
Published by: Masarykova univerzita nakladatelství
Keywords: Money; Double Coincidence of Wants; Search models; Infinite games;
Summary/Abstract: This paper is focused on the microeconomic foundation of the theory of money. I argue that the absence of double coincidence of wants per se is not able to explain the existence of money. The argument has two parts. First, I argue that existing models without double coincidence of wants include also other frictions. Second, I show that double coincidence of wants is neither sufficient nor necessary condition for the essentiality of money.

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