CFDP 1050

The Money Rate of Interest and the Influence of Assets in a Multistage Economy with Gold or Paper Money: Part II


Publication Date: June 1993

Pages: 32


We consider the relationship between the length of life of individuals and the assets they own and their influence on trustless trade. In particular in some structures a role for government or an outside bank may be called for to support an equilibrium. An example of an OLG model with production illustrates the need for expanding the fiat money supply if population growth is greater than zero.

See CFP: 770