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Federal Reserve Bank of Richmond
Economic Quarterly
Self-Insurance and the Risk-Sharing Role of Money
Russell Wong
Abstract

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.


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Russell Wong, "Self-Insurance and the Risk-Sharing Role of Money" , Federal Reserve Bank of Richmond, Economic Quarterly, issue 1Q, pages 35-52, 2018.
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Keywords: self-insurance; money; risk-sharing; toy model
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