TY -
GEN
AU - Hoog, Sander van der
TI -
On the disequilibrium dynamics of sequential monetary economies
KW - Circular exchange
KW - Trading posts
KW - Effective demand
KW - Quantity expectations
KW - Moving-horizon optimization
KW - C61
KW - D51
KW - D60
KW - E31
PY - 2008
N2 - Postprint
N2 - begutachtet (peer reviewed)
N2 - In: Journal of Economic Behavior & Organization ; 68 (2008) 3-4 ; 525-552
N2 - The purpose of this paper is to study the dynamic behavior of a sequential monetary exchange economy. Transactions take place sequentially against non-equilibrium prices, there is quantity rationing, and credit or cash are the only means of exchange. Agents have optimistic or pes- simistic expectations about quantity constraints that represent their beliefs about future trading opportunities. In the credit model the agents incur debts along the transition path towards equilibrium, while in the cash-in-advance model convergence takes place without the occurrence of any debts or claims. The credit mechanism is shown to act as a 'soft' correction mechanism on credit fluctuations, while the cash-in-advance constraint acts as a 'hard' negative feedback effect driving the prices back towards a neighborhood of a monetary cash-in-advance equilibrium.
UR - http://slubdd.de/katalog?TN_libero_mab2
ER -