Why Inside Money Matters
指出，在禀赋异质且存在现金先行约束的无限期经济中，只有通过针对不同群体的税收才能用法定货币实现帕累托最优；而如果信贷合同可执行，则无需这种针对性政策就能达到相同配置。这揭示了内部货币的优势及其对债务偿还执行能力的依赖，引导我们研究支撑自我执行内部货币均衡的制度基础设施。
This note observes that in a simple infinite horizon economy with heterogeneous endowments and a cash‐in‐advance constraint fiat money can be used to implement a Pareto optimum only with type‐specific taxation. By contrast, if credit contracts are enforceable, the same allocation can be reached in equilibrium without type specific policy. We argue that the advantages of inside money and the fact that they depend on the capacity of the economy to enforce the repayment of debt direct us toward the study of the institutional infrastructure underlying self‐enforcing inside money equilibria.