- Title Pages
- Dedication
- Preface
- Acknowledgments
-
Chapter 1 Money and Context -
Chapter 2 The Properties of Markets -
Chapter 3 The Basic Model -
Chapter 4 Trade with a Money Market -
Chapter 5 Trade with a Rich Large Agent -
Chapter 6 Markets with Gold -
Chapter 7 Markets with Fiat -
Chapter 8 Default and Bankruptcy -
Chapter 9 A One-Period Sell-All Model -
Chapter 10 Clearinghouses, Credit, and Control -
Chapter 11 The Size and Role of Financial Institutions -
Chapter 12 Oligopolistic Competition with Cash and with a Money Market -
Chapter 13 Monopolistic and Oligopolistic Bankers -
Chapter 14 Competitive Banking I: Corporate Banking with a Central Bank -
Chapter 15 Competitive Banking II: Demonetization of Gold -
Chapter 16 Multiperiod Models of Trade -
Chapter 17 Pure Theory, Practice, and Context - Bibliography
- Names
- Subjects
Default and Bankruptcy
Default and Bankruptcy
- Chapter:
- (p.115) Chapter 8 Default and Bankruptcy
- Source:
- Barley, Gold, or Fiat
- Author(s):
Thomas Quint
Martin Shubik
- Publisher:
- Yale University Press
The fiat-money-with-strategic-dummy-bank models of chapter 7 are altered to allow the traders to strategically default. Mathematically this means removing the budget constraint from the traders’ optimizations but including a “default penalty” in their objective functions. Our results are identical with the models from chapter 7, except there is now a subcase of the “original endowment of money very small” case in which it is optimal for the traders to default on their loans.
Keywords: bankruptcy, default, default penalty, interest rate vs money supply, secured loan
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- Title Pages
- Dedication
- Preface
- Acknowledgments
-
Chapter 1 Money and Context -
Chapter 2 The Properties of Markets -
Chapter 3 The Basic Model -
Chapter 4 Trade with a Money Market -
Chapter 5 Trade with a Rich Large Agent -
Chapter 6 Markets with Gold -
Chapter 7 Markets with Fiat -
Chapter 8 Default and Bankruptcy -
Chapter 9 A One-Period Sell-All Model -
Chapter 10 Clearinghouses, Credit, and Control -
Chapter 11 The Size and Role of Financial Institutions -
Chapter 12 Oligopolistic Competition with Cash and with a Money Market -
Chapter 13 Monopolistic and Oligopolistic Bankers -
Chapter 14 Competitive Banking I: Corporate Banking with a Central Bank -
Chapter 15 Competitive Banking II: Demonetization of Gold -
Chapter 16 Multiperiod Models of Trade -
Chapter 17 Pure Theory, Practice, and Context - Bibliography
- Names
- Subjects
