SMU SOE Seminar (Dec 11, 2019): 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. Click here to view the paper. Click here to view the CV.
		PRESENTER Guillaume Rocheteau University of California, Irvine
		RESEARCH FIELDS Macroeconomics Monetary Theory Search Theory
		DATE: 11 December 2019 (Wednesday)
		TIME: 4pm - 5.30pm
		VENUE: Meeting Room 5.1, Level 5 School of Economics Singapore Management University 90 Stamford Road Singapore 178903