Market equilibria and money

Abstract By the first welfare theorem, competitive market equilibria belong to core and hence are Pareto optimal . Letting money be a commodity, this paper turns these two inclusions around. More precisely, by generalizing second theorem we show that said solutions may coincide as common fixed point for one same system. Mathematical arguments invoke conjugation, convolution, generalized gradients. Convexity is merely needed via subdifferentiablity of aggregate “cost”, at only. Economic hinge on idealized mechanisms. Construed algorithms, each stops, steady state prevails if only price-taking markets clear value added nil.