Econometrica: Jan, 1974, Volume 42, Issue 1

The Price of Money in a Pure Exchange Monetary Economy with Taxation

https://doi.org/0012-9682(197401)42:1<45:TPOMIA>2.0.CO;2-4
p. 45-54

Ross M. Starr

Market determination of the value in exchange (price) of money is considered in a general equilibrium finite horizon model. The possibility of the price of money being zero in equilibrium and the role of taxes (payable in money) in preventing a zero price are considered.