Hostname: page-component-586b7cd67f-2brh9 Total loading time: 0 Render date: 2024-11-27T16:16:18.599Z Has data issue: false hasContentIssue false
  • English
  • Français

A NOTE ON “MONEY IS MEMORY“: A COUNTEREXAMPLE

Published online by Cambridge University Press:  20 April 2016

Yu Awaya  and
Hiroki Fukai
Yu Awaya*
Affiliation:
University of Rochester
Hiroki Fukai
Affiliation:
The Pennsylvania State University
*
Address correspondence to: Yu Awaya, University of Rochester, 280 Hutchison Rd., Box 270156, Rochester, NY 14627, USA; e-mail: yuawaya@gmail.com.
Get access Rights & Permissions [Opens in a new window]

Abstract

A counterexample to the notion that money is memory is provided—one that relies on incomplete information. There exists an implementable allocation for it with money that is not implementable with memory. The result arises because money conveys only a limited amount of information about past actions, which can be beneficial in settings with incomplete information.

Keywords

MoneyIncomplete InformationImperfect Monitoring
Type
Notes
Information
Macroeconomic Dynamics , Volume 21 , Issue 2 , March 2017 , pp. 545 - 553
Copyright
Copyright © Cambridge University Press 2016 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

We are most grateful to Neil Wallace for his continuous guidance and encouragement. We also would like to thank Kalyan Chatterjee, Russell Cooper, Tadashi Sekiguchi, Ruilin Zhou, participants in Cornell/PennState Macro Workshop 2013 Fall, an anonymous referee, an associate editor, and especially Ed Green, for their comments.

References

REFERENCES

Fudenberg, Drew and Levine, David K. (1989) Reputation and equilibrium selection in games with a patient player. Econometrica 57, 759–778.CrossRefGoogle Scholar
Kahn, Charles M., McAndrews, James, and Roberds, William (2005) Money is privacy. International Economic Review 46, 377–399.Google Scholar
Kocherlakota, Narayana R. (1998) Money is memory. Journal of Economic Theory 81, 232–251.Google Scholar
Mailath, George J. and Samuelson, Larry (2006) Repeated Games and Reputations. Oxford, UK: Oxford University Press.CrossRefGoogle Scholar
Wallace, Neil (2010) The mechanism design approach to monetary theory. In Friedman, B. and Woodford, M. (eds.), Handbook of Monetary Economics, 2nd ed., pp. 3–23. Amsterdam: Elsevier.Google Scholar