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Article: Samuelson's model of money with n-period lifetimes. (Paul Samuelson)
- Article from:
- Federal Reserve Bank of St. Louis Review
- Article date:
- May 1, 1992
- Author:
CopyrightCOPYRIGHT 1992 Federal Reserve Bank of St. Louis. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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PAUL SAMUELSON'S OVERLAPPING generations model is a classic in modern economic literature. It has enjoyed a renaissance in the last decade or so as a framework for analyzing fundamental issues in many areas of economics, including pure theory, public finance and, of special concern for this paper, monetary theory.1 Samuelson's (1958) model continues to attract interest in the latter field because it has the potential to offer a convincing explanation of why unbacked paper currency has value without resort to special assumptions.2 This paper will focus on the value of paper currency in a generalized version of Samuelson's original approach.
Samuelson's essential ...