Lagos, Ricardo; Rocheteau, Guillaume - 2004
money as a medium of exchange, and
we establish conditions on fundamentals under which fiat money can be both valued and … dominates the nonmonetary one in terms of welfare. Under the
Friedman Rule, fiat money provides just enough liquidity so that … (capital goods) compete with fiat money as a medium
of exchange, and we address the following questions: Can fiat money be …