Money and indeterminacy over an infinite horizon

Arbeitspapier

Money provides liquidity services through a cash-in-advance constraint. The exchange of commodities and assets extends over an infinite horizon under uncertainty and a complete asset market. Monetary policy sets the path of rates of interest and accommodates the demand for balances. Competitive equilibria exist. But, for a fixed path of rates of interest, there is a non-trivial multiplicity of equilibrium paths of prices of commodities. Determinacy requires that, subject to no-arbitrage and in addition to rates of interest, the prices of state-contingent revenues be set. – Money ; equilibrium ; indeterminacy ; monetary policy ; fiscal policy.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2002-12

Classification and Topics

• Classification: Wirtschaft ; General Equilibrium and Disequilibrium: General ; Money and Interest Rates: General ; Monetary Policy, Central Banking, and the Supply of Money and Credit: General
• Subject: Geld ; Gesamtwirtschaftliche Liquidität ; Geldpolitik ; Finanzpolitik ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bloise, G. ; Drèze, J. H. ; Polemarchakis, H. M.
• Event: Veröffentlichung
• (who): Brown University, Department of Economics
• (where): Providence, RI
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/80225
• Last update: 10.03.2025, 11:42 AM CET