We study an economy in which exchange occurs pairwise, there is no commitment, and anonymous agents choose between random monetary trade or deterministic credit trade. To accomplish the latter, agents can exploit a costly technology that allows limited record-keeping, and enforcement. An equilibrium with money and credit is shown to exist if the cost of using the technology is sufficiently small. Anonymity, record-keeping, and enforcement limitations also permit some incidence of default, in equilibrium.

Another example of a credit system that co-exists with money / Camera, Gabriele*; Li, Yiting. - In: JOURNAL OF MONEY, CREDIT, AND BANKING. - ISSN 0022-2879. - STAMPA. - 40:6(2008), pp. 1295-1308. [10.1111/j.1538-4616.2008.00158.x]

Another example of a credit system that co-exists with money

Camera, Gabriele
;
2008

Abstract

We study an economy in which exchange occurs pairwise, there is no commitment, and anonymous agents choose between random monetary trade or deterministic credit trade. To accomplish the latter, agents can exploit a costly technology that allows limited record-keeping, and enforcement. An equilibrium with money and credit is shown to exist if the cost of using the technology is sufficiently small. Anonymity, record-keeping, and enforcement limitations also permit some incidence of default, in equilibrium.
2008
Another example of a credit system that co-exists with money / Camera, Gabriele*; Li, Yiting. - In: JOURNAL OF MONEY, CREDIT, AND BANKING. - ISSN 0022-2879. - STAMPA. - 40:6(2008), pp. 1295-1308. [10.1111/j.1538-4616.2008.00158.x]
Camera, Gabriele*; Li, Yiting
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/635735
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