A group of people wishes to use money to exchange goods efficiently over several time periods. However, there are disadvantages to using any of the goods as money, and in addition fiat money issued in the form of notes or coins will be valueless in the final time period, and hence in all earlier periods. Also, Walrasian market prices are determined only up to an arbitrary rescaling. Nevertheles...

Economists long considered money illusion to be largely irrelevant. Here we show, however, that money illusion has powerful effects on equilibrium selection. If we represent payoffs in nominal terms, choices converge to the Pareto inefficient equilibrium; however, if we lift the veil of money by representing payoffs in real terms, the Pareto efficient equilibrium is selected. We also show that ...

“Do the Wealthy Risk More Money? An Experimental Comparison” by Antoni Bosch-Domènech and Joaquim Silvestre Universitat Pompeu Fabra and University of California, Davis. Are poor people more or less likely to take money risks than wealthy folks? We find that risk attraction is more prevalent among the wealthy when the amounts of money at risk are small (not surprising, since ten dollars is a sm...

The dynamic nature of projects and the fact that they are carried out in changing environments, justify the need for their periodic monitoring and control. Collection of information about the performance of projects at control points costs money. The corrective actions that may need to be taken to bring the project in line with the plan also costs money. On the other hand, penalties are usually...

The Chinese economy underwent cyclical fluctuations in growth and inflation in the reform period. Contrasting views exist on the role of money in such fluctuations. This paper assesses these views employing structural VEC models based on the exchange equation. It is found that in the long run money accommodates, rather than causes, changes in output and prices. In the short run, price fluctuati...

Money demand determinants vary in every economy. There are many studies about Iran money demand function, which employed different variables and estimation methods. In this study, broad money (M2) is dependent variable and GDP, interest rate, exchange rate and household religious costs are descriptive variables. Household religious costs (urban and rural) are included in Iran money demand funct...

electronic money that defined as stored-value on an electronic device and at present time is last phase of gradual evolution of money, is described as process of immaterialization and being invisibility of money. it is new phenomenon that in economic view has potential for play the roles of money and its functions. for analysis of legal nature of this phenomenon two approaches can be adopted. f...