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Inseparability of Transaction Medium and Store of Value in the Role of Money
Institute of Social Science, University of Tokyo, Tokyo, Japan
- 1 Institute of Social Science, University of Tokyo, Tokyo, Japan
Theoretical Economics Letters·Volume 03 (2013)·Pages 226–228·Published 17 July 2013·DOI10.4236/tel.2013.34038
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Abstract
We analyze whether or not money can be circulated as a purely transaction medium in the search theory. We obtain the following result: unless the role of a store of value added to the function of money, money does not circulate and the economy degenerates into a barter economy.
KeywordsSearch Theory of MoneyDegeneration of Monetary Economy into Barter EconomyInseparability of Transaction Medium and Store of Value
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