Monetary equilibria in a cash-in-advance economy with incomplete financial markets

Arbeitspapier

The general equilibrium model with incomplete financial markets (GEI) is extended by adding fiat money, fiscal and monetary policy and a cash-in-advance constraint. The central bank either pegs the interest rate or money supply while the fiscal authority sets a Ricardian or a non-Ricardian fiscal plan. We prove the existence of equilibria in all four scenarios. In Ricardian economies, the conditions required for existence are not more restrictive than in standard GEI. In non- Ricardian economies, the sufficient conditions for existence are more demanding. In the Ricardian economy, neither the price level nor the equivalent martingale measure are determinate.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Preprints of the Max Planck Institute for Research on Collective Goods ; No. 2005,18

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Incomplete Markets ; Money and Interest Rates: General ; Monetary Policy, Central Banking, and the Supply of Money and Credit: General
• Thema: Money ; Incomplete Markets ; Fiscal Policy ; Indeterminacy ; Unvollkommener Markt ; Cash-in-Advance-Modell ; Finanzpolitik ; Papierwährung ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Bai, Jinhui H. ; Schwarz, Ingolf
• Ereignis: Veröffentlichung
• (wer): Max Planck Institute for Research on Collective Goods
• (wo): Bonn
• (wann): 2005

Weitere Informationen

• Handle: http://hdl.handle.net/10419/26874
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ