Another Example of a Credit System that Co‐Exists with Money

B-Tier
Journal: Journal of Money, Credit, and Banking
Year: 2008
Volume: 40
Issue: 6
Pages: 1295-1308

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:wly:jmoncb:v:40:y:2008:i:6:p:1295-1308
Journal Field
Macro
Author Count
2
Added to Database
2026-01-25