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Gold, liquidity and secured loans in a multistage economy

Part II: Many durables, land and gold

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Abstract

A multistage economy with durables with finite and with unbounded lives is considered. The importance of the existence of both asset and rental markets is considered. It is shown that without rental markets efficiency may not be achieved and a stationary state that might exist with rental markets need not exist. The meaning of the existence of a 100% backed loan is considered. The roles of gold and land as stores of value and money are considered.

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Author notes

  1. Martin Shubik

    Present address: Department of Economics, Yale University, P. O. Box 2125 Yale Station, 06520, New Haven, Connecticut, USA

  2. Shontan Yao

    Present address: Department of Mathematics, Jinan University, Guangzhou, China

Authors and Affiliations

    Authors
    1. Martin Shubik
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    2. Shontan Yao
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    Additional information

    Research supported in part by ONR Grant N00014-86-K-0220 and by NSF Grant No. SES-8812051.

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    Shubik, M., Yao, S. Gold, liquidity and secured loans in a multistage economy. Zeitschr. f. Nationalökonomie 52, 1–23 (1990). https://doi.org/10.1007/BF01227499

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    • DOI: https://doi.org/10.1007/BF01227499

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