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The political economy of overlapping generations

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  • John Bryant

Abstract

The formation and maintenance of the institutions of money and a futures market are analyzed in an overlapping generations model with a first period. With money and a futures market the economy converges to the allocation where costly transactions are foregone and marginal products and marginal utilities equated. However, neither institution may be formed, or money may be formed without a futures market. Moreover, stochastic output technologies raise the possibility of persistent recession and depression and of valuable government insurance of the futures market.

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  • John Bryant, 1979. "The political economy of overlapping generations," Staff Report 43, Federal Reserve Bank of Minneapolis.
    • Handle: RePEc:fip:fedmsr:43
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    References listed on IDEAS

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    1. Bryant, John & Wallace, Neil, 1979. "The Inefficiency of Interest-bearing National Debt," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 365-381, April.
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    Cited by:

    1. John Bryant, 1979. "Demand management: an illustrative example," Staff Report 46, Federal Reserve Bank of Minneapolis.
    2. Preston J. Miller & Arthur J. Rolnick, 1979. "The CBO's policy analysis: an unquestionable misuse of a questionable theory," Staff Report 49, Federal Reserve Bank of Minneapolis.

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