Self-Insurance and the Risk-Sharing Role of Money
Economic Quarterly
First Quarter 2018
Overcoming the lack of coincidence of wants is a well-acknowledged role of money. In this review, I illustrate that the use of money also promotes risk-sharing in the society: when individuals hold money, it helps other individuals mitigate their own liquidity risks.
Subscribe to Economic Quarterly
Receive an email notification when Economic Quarterly is posted online:
Contact Us