2017 Fiscal Year Final Research Report
Dynamic analysis of financial crisis under the fluctuation of collateral value and coordination failure among creditors
| Project/Area Number |
25780208
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| Research Category |
Grant-in-Aid for Young Scientists (B)
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| Allocation Type | Multi-year Fund |
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| Research Field |
Money/ Finance
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| Research Institution | Nihon University |
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Principal Investigator |
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| Project Period (FY) |
2013-04-01 – 2018-03-31
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| Keywords | 貨幣 / 価値尺度 / 交換手段 / 決済システム |
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| Outline of Final Research Achievements |
This research analyzes an economy in which agents are spatially separated and hold several contracts with different agents. If IOUs are the medium of exchange, agents cannot share risks to their consumption because of relative price shocks. In contrast, if common currency is used as a medium of exchange, then agents can share consumption risks as the relative wealth distribution among workers is immune to relative price shocks. Thus, the use of common currency improves welfare despite the availability of credit. Because of this risk-sharing effect, common currency is generally used not only as a unit of account but also as a medium of exchange.
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| Free Research Field |
金融
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