Temporary disequilibrium of a pure cash economy

• Seoane Salazar, Martín Esteban ^[1]
  1. [1] Universidad Autónoma Metropolitana

     Universidad Autónoma Metropolitana

     México

     
• Localización: Investigación económica, ISSN 0185-1667, Vol. 83, Nº. 328, 2024, págs. 158-177
• Idioma: inglés
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• Resumen
  • español

    A Classical theoretical model of temporary disequilibrium in a pure cash monetary system is formulated, in which each capitalist aims to maximize accumulation in her/his own sector, and prices and allocations are determined by the Cantillon rule. The dynamics generated by this economy are those of a sequence of temporary disequilibria, which are shown to be locally and globally unstable. Thus, government intervention is justified to avoid an economic crisis. The paper concludes by recommending an extension of the model considering alternative monetary systems.

    DESEQUILIBRIO TEMPORAL DE UNA ECONOMÍA DE EFECTIVO PURO RESUMEN Se formula un modelo de desequilibrio temporal de inspiración teórica clásica para una economía monetaria de efectivo puro, en la que cada capitalista intenta maximizar la acumulación en su propia rama productiva, y los precios y las asignaciones se determinan mediante la regla Cantillon. Se muestra que la dinámica generada por esta economía es la de una secuencia de desequilibrios temporales que es local y globalmente inestable. Por lo que se justifica la intervención gubernamental para evitar una crisis económica. El artículo concluye recomendando extender el modelo asumiendo sistemas monetarios alternativos.

  • English

    A Classical theoretical model of temporary disequilibrium in a pure cash monetary system is formulated, in which each capitalist aims to maximize accumulation in her/his own sector, and prices and allocations are determined by the Cantillon rule. The dynamics generated by this economy are those of a sequence of temporary disequilibria, which are shown to be locally and globally unstable. Thus, government intervention is justified to avoid an economic crisis. The paper concludes by recommending an extension of the model considering alternative monetary systems.