SFI Working Paper Abstract
2001
| Title: | Money and the Monetization of Credit |
| Author(s): | Martin Shubik |
| Files: | [gzipped postscript] [postscript] [pdf] |
| Paper #: | 01-12-080 |
| Abstract: | The relationship between money and credit is developed in terms of "know-who" networks. It is suggested that the link between dynamics and equilibrium theory in economics can be built by regarding the noncooperative no-credit and the general equilibrium models as providing lower and upper bounds to the dynamics. The dynamics involves the reinforcement of trust in "know-who" networks. Some suggestions for the measurement of the velocity of money and credit are made. |