Overlapping Structures as a Model of Money

The list of those to whom I am indebted is a long one. Prof. Neil Wallace (University of Minnesota) stimulated my interest in the kind of models with which the book deals. I am grateful for a large number of conversations with him. I learned a lot from him and will always be proud that I have been one of his student. I hope that he is not dissappointed with the outcome. I am deeply indebted to Prof. Dr. Hans-Werner Sinn (University of Munich). His observations and critical remarks were instrumental for a great number of changes and improvements which I was able to introduce while revising the manuscript again and again, and rethinking the basic arguments. I also want to thank Prof. Dr. Utta Gruber (University of Munich) for her helpful comments and for her support. I am very much obliged to Prof. Dr. Dr. h. c. Hans Moller (University of Munich). For many years I have had the honour of a nearly continuous dialogue with him. I am also grateful to Prof. Dr. Werner Gumpel (University). The stimulating atmosphere and the research opportunities which were provided by his seminar contributed a lot to my work. Finally I want to thank my wife Sigrid for looking through the English draft of this book and correcting numerous linguistic flaws. The remaining errors are of course mine. CONTENTS Page v Preface 1. INTRODUCTION 1. 1.

Autorentext
Bruno Schönfelder hat Volkswirtschaftslehre und Slawistik an der Universität München und der University of Minnesota studiert; Promotion zum Dr. rer pol. 1984, Habilitation an der Volkswirtschaftlichen Fakultät der Universität München 1990, Lehrstuhlvertretung in Rostock 1991, Gründungsprofessor für VWL an der Bergakademie Freiberg 1992, dort derzeit Dekan der wirtschaftswiss. Fakultät, Forschungsinteressen: Volkswirtschaften postsozialistischer Länder Ostmitteleuropa und des Balkan.

Inhalt

1. Introduction.- 1.1. The Integration of Monetary and Value Theory.- 1.2. The Concept of an Overlapping Structure.- 1.3. The Purpose of this Book.- 2. The Overlapping Generation Model: An Overview.- 2.1. The Samuelson-Model.- 2.2. OGMs with Production and Capital.- 2.3. Generalizations of the Basic Model.- 2.4. The Interpretation of Indeterminacy.- 2.5. Concluding Remark.- 3. Overlapping Structures and Cash-In-Advance Constraints.- 3.1. Cass' Theorems.- 3.2. The Analogy between the Samuelson Model and a Simple Cash-in-Advance Constraint Model.- 3.3. A Physical Structure which Generates Cash-in-Advance Constraints.- 4. The Rate of Return Paradox I: OGM with Transaction Costs.- 4.1. A Transaction Costs Model by Bryant and Wallace.- 4.2. Difficulties of Identifying Safe Assets and the Rate of Return Paradox.- 4.3. Baumol's Inventory Model of Money.- 4.4. A Concluding Remark.- 5. The Rate of Return Paradox II: Legal Restrictions.- 5.1. Legal Restrictions in the FR Germany.- 5.2. Implications of the Legal Restriction Theory.- 5.3. Some Observations from Monetary History and the Present.- 5.4. Legal restrictions as an Expedient for Levying the Inflation Tax.- 5.5. Minimum Reserve Requirements and Indeterminacy.- 5.6. Minimum Sizes for Privately Issued Bearer's Notes.- 5.7. Holding out the Prospect of Backing.- 5.8. Concluding Remark.- 6. Private Production of Outside Money.- 6.1. Competition between Private Producers of Fiat Money.- 6.2. Money as a Natural Monopoly.- 6.3. Gresham's Law.- 6.4. Concluding Remark.- 7. Topics in Commodity Money Theory.- 7.1. A Model of a Gold Specie Standard.- 7.2. The Quantity Theory of Money.- 7.3. Uniqueness of Equilibrium.- 7.4. Restrictions on the Production of Inside Money.- 7.5. Commodity Money withoutReserves.- 8. A Few Macroeconomic Applications.- 8.1. A Model with Non-Interest Bearing Money and Interest-Bearing Public Debt.- 8.2. Backed and Unbacked Public Debt.- 8.3. A Simple Model with Cash-in-advance Constraints and Credit Goods.- 8.4. The Distinction between Outside and Inside Money.- 8.5. The Fisher Effect.- 8.6. Grandmont-Policy.- 9. Monetary Policy in The Open Economy.- 9.1. The Kareken and Wallace Model.- 9.2. Stabilizing and Destabilizing Speculation.- 9.3. Concluding Remark.- 10. Summary and Conclusions.- 10.1. Summary.- 10.2. Conclusions.