Abstract
In general equilibrium theory the price of one good in terms of another is interpreted as the amount of the second which can be exchanged for a given amount of the first. There is thus no essential role for a standard of value, or numéraire, though it is frequently helpful to introduce this. Such a numéraire is a commodity in terms of which, by convention, other commodities are valued.
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© 1989 Palgrave Macmillan, a division of Macmillan Publishers Limited
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Allingham, M. (1989). Numéraire. In: Eatwell, J., Milgate, M., Newman, P. (eds) General Equilibrium. The New Palgrave. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-19802-3_24
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DOI: https://doi.org/10.1007/978-1-349-19802-3_24
Publisher Name: Palgrave Macmillan, London
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