Skip to Main Content

Economic Quarterly

First Quarter 2018

Self-Insurance and the Risk-Sharing Role of Money

Russell Wong

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:

phone Contact Us

Lisa Kenney (804) 697-8179