Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80225
Authors: 
Bloise, G.
Drèze, J. H.
Polemarchakis, H. M.
Year of Publication: 
2002
Series/Report no.: 
Working Paper, Brown University, Department of Economics 2002-12
Abstract: 
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.
JEL: 
D50
E40
E50
Document Type: 
Working Paper

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