Money-Hoarding as a Behaviour Towards Uninsured Idiosyncratic Risk |
| |
Authors: | Akiomi Kitagawa |
| |
Affiliation: | Osaka Prefecture University |
| |
Abstract: | This paper explores the implications of the presence of uninsured idiosyncratic risks for the hoarding of intrinsically useless fiat money in an overlapping-generations model. It is shown that: (a) monetary equilibria exist in almost all cases; (b) the valuation of money is not necessarily Pareto-improving since the non-monetary steady state may Pareto-dominate the monetary one; and (c) the accelerating inflation may, moreover, reduce the long-run capital stock. JEL Classification Number: E41. |
| |
Keywords: | |
|
|