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.[phone]                

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

Conflicts of Interest

The authors declare no conflicts of interest.

References

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