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ECON 3430 Lecture 1: ECON 3430 Lecture 1 Notes – A Simple Model of Money: Building a Model of Money and The Environment

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Verified Note
ivorycat684
19 Jan 2019
School
York University
Department
Economics
Course
ECON 3430
Professor
Georgios Stefanidis

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ECON 3430 Lecture 1: ECON 3430 Lecture 1 Notes – A Simple Model of Money: Building a Model of Money and The Environment

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ECON 3430 Lecture Notes - Lecture 2: Overlapping Generations Model, Indifference Curve, Contour Line

3

ECON 3430 Lecture Notes - Lecture 3: Facing Future, Jargon

Document Summary

Econ 3430 lecture 1 notes a simple model of money: building a model of money and. In contrast, people do not want money in order to consume it: people want goods for the utility received from their consumption, they want money because money helps them get the things they want to consume. In the overlapping generations" economy, money is the means for executing intergenerational transfers: mutually beneficial trades are conducted despite the friction between generations, money embodies both features by overcoming the intergenerational friction and being. In contrast, without money, the old generation has nothing the young generation wants. durable enough to carry from one period to the next: kocherlakota demonstrates that perfect memory is equivalent to money. In the basic overlapping generations model, individuals live for two periods: we call people in the first period of life young and those in the second period of life. In each period t 1,nt individuals are born.

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