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TOPIC:
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MONEY MINING AND PRICE DYNAMICS
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ABSTRACT
We develop a random-matching model to study the price dynamics of monies produced privately according to a time-consuming mining technology. There exists a unique equilibrium where the value of money reaches a steady state. There is also a continuum of perfect-foresight equilibria indexed by the starting value of the currency where the price of money inflates and bursts gradually over time. In the aftermath of its introduction, private money is held for a speculative motive and it acquires a transactional role when it becomes sufficiently abundant. We study divisible, indivisible, fiat and commodity monies, and adopt implementation and equilibrium approaches.
Keywords: Money, Search, Private Monies, Mining.
JEL Codes: E40, E50.
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Click here to view the CV.
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PRESENTER
Guillaume Rocheteau
University of California, Irvine
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RESEARCH FIELDS
Macroeconomics
Monetary Theory
Search Theory
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DATE:
11 December 2019 (Wednesday)
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TIME:
4pm - 5.30pm
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VENUE:
Meeting Room 5.1, Level 5
School of Economics
Singapore Management University
90 Stamford Road
Singapore 178903
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