A Theory of Money and Financial Institutions. Part 36. The Money Rate of Interest (A Multiperiod Nonatomic Trading and Production Economy with Outside Money, Inside Money and Optimal Bankruptcy Rules),

A model of trade and production through time using fiat and bank money is presented. Many of the detailed points concerning modelling of trade using fiat outside and bank inside money are covered elsewhere. In this paper an attempt is made to give both a self contained yet not overly discursive analysis of the roles of the two types of money and production in a multiperiod economy. The following topics are discussed The Competitive Equilibrium and Rate of Interest Modelling an Exchange Economy as a Game in Strategic Form and Production and Exchange -- The finite horizon.