MONETARY EQUILIBRIUM WITH MISSING MARKETS BY PRADEEP DUBEY and JOHN GEANAKOPLOS COWLES FOUNDATION PAPER NO. 1063 COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
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چکیده
We add inside and outside money to the standard GEI model. If there enough gains to trade via money, then monetary equilibrium (ME) exists and money has positive value, even when GEI fails to exist. The nonexistence of GEI shows up as a liquidity trap in terms of the ME. In sharp contrast to GEI, the ME are generically determinate not only in terms of real, but also financial, variables. © 2003 Elsevier Science B.V. All rights reserved. JEL classification: D50; E40; E50; E58
منابع مشابه
MONEY AND PRODUCTION, AND LIQUIDITY TRAP BY PRADEEP DUBEY and JOHN GEANAKOPLOS COWLES FOUNDATION PAPER NO. 1200 COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
We prove the existence of monetary equilibrium in a finite horizon economy with production. We also show that if agents expect the monetary authority to significantly decrease the supply of bank money available for short-term loans in the future, then the economy will fall into a liquidity trap today.
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We build a finite horizon model with inside and outside money, in which interest rates, price levels and commodity allocations are determinate, even though asset markets are incomplete and asset deliveries are purely nominal.
متن کاملFROM NASH TO WALRAS VIA SHAPLEY–SHUBIK BY PRADEEP DUBEY and JOHN GEANAKOPLOS COWLES FOUNDATION PAPER NO. 1065 COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
We derive the existence of a Walras equilibrium (WE) directly from Nash’s theorem on noncooperative games. No price player is involved, nor are generalized games. Instead we use a variant of the Shapley–Shubik trading-post game. © 2003 Elsevier Science B.V. All rights reserved.
متن کاملINSIDE AND OUTSIDE FIAT MONEY, GAINS TO TRADE, AND IS-LM BY PRADEEP DUBEY and JOHN GEANAKOPLOS COWLES FOUNDATION PAPER NO. 1052 COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
We build a one-period general equilibrium model with money. Equilibrium exists, and fiat money has positive value, as long as the ratio of outside money to inside money is less than the gains to trade available at autarky. We show that the nominal effects of government fiscal and monetary policy can be completely described by a diagram identical in form to the IS-LM curves introduced by Hicks t...
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