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

Masayuki Otaki

doi:10.4236/tel.2013.34038

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Theoretical Economics Letters > Vol.3 No.4, August 2013

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

Masayuki Otaki

Institute of Social Science, University of Tokyo, Tokyo, Japan.

DOI: 10.4236/tel.2013.34038 PDF HTML 3,253 Downloads 4,640 Views Citations

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.

Keywords

Search Theory of Money; Degeneration of Monetary Economy into Barter Economy; Inseparability of Transaction Medium and Store of Value

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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