Inseparability of Transaction Medium and Store of Value in the Role of Money ()
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.
Share and Cite:
M. Otaki, "Inseparability of Transaction Medium and Store of Value in the Role of Money,"
Theoretical Economics Letters, Vol. 3 No. 4, 2013, pp. 226-228. doi:
10.4236/tel.2013.34038.
Conflicts of Interest
The authors declare no conflicts of interest.
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