Arbeitspapier
General equilibrium with monopolistic firms and occasionally binding cash-in-advance constraints
We show a simple way to introduce monopolistic competition in a general equilibrium model where prices are fully .exible, the velocity of money is variable and cash-in-advance (CIA) constraints occasionally bind.We establish the conditions under which money has real effects and demonstrate that an equilibrium that occurs at a binding CIA constraint is welfare inferior to any equilibrium that occurs at a nonbinding CIA constraint with the same level of technology. We argue that even though the probability of a binding CIA constraint can be increasing with money supply, under certain conditions, expansionary money supply is welfare improving.
- Sprache
-
Englisch
- Erschienen in
-
Series: Cardiff Economics Working Papers ; No. E2010/6
- Klassifikation
-
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Price Level; Inflation; Deflation
Demand for Money
Money Supply; Credit; Money Multipliers
- Thema
-
cash-in-advance
general equilibrium
monopolistic competition
Monopolistischer Wettbewerb
Konditionen
Geldangebot
Allgemeines Gleichgewicht
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Dixon, Huw
Pourpourides, Panayiotis M.
- Ereignis
-
Veröffentlichung
- (wer)
-
Cardiff University, Cardiff Business School
- (wo)
-
Cardiff
- (wann)
-
2010
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Dixon, Huw
- Pourpourides, Panayiotis M.
- Cardiff University, Cardiff Business School
Entstanden
- 2010
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