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Inseparability of Transaction Medium and Store of Value in the Role of Money

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DOI: 10.4236/tel.2013.34038    3,085 Downloads   4,426 Views   Citations
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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.

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The authors declare no conflicts of interest.

Cite this paper

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.


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