CFDP 1112

Time and Money


Publication Date: January 1996

Pages: 20


General equilibrium is timeless, and without outside money, the price system is homogeneous of order zero. Some finite horizon strategic market game models are considered with an initial issue of flat money held as an asset. For any arbitrary finite horizon, the solution is time-dependent. In the infinite horizon, time disappears with the initial issue of flat money present as circulating capital in the fully stationary state and the price level is determined.


Published in W. Brian Arthur, Steven Durlauf and David Lane, eds., The Economy as a Complex Evolving System II, Addison-Wesley, 1997