TITLE:
Inseparability of Transaction Medium and Store of Value in the Role of Money
AUTHORS:
Masayuki Otaki
KEYWORDS:
Search Theory of Money; Degeneration of Monetary Economy into Barter Economy; Inseparability of Transaction Medium and Store of Value
JOURNAL NAME:
Theoretical Economics Letters,
Vol.3 No.4,
July
17,
2013
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.