Martin Shubik

Paper #: 96-03-013

General equilibrium is timeless, and without outside money, the price system is homogeneous of order zero. Some finite horizon strategic market game models are considered with an initial issue of fiat money held as an asset. For any arbitrary finite horizon, the solution is time dependent. In the infinite horizon, time disappears with the initial issue of fiat money present as circulating capital in the fully stationary state and the price level is determined.

PDF