Money and indeterminacy over an infinite horizon 1

  title={Money and indeterminacy over an infinite horizon 1},
  author={Gaetano Bloise and Jacques Dr{\`e}ze and Heracles M. Polemarchakis},
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… CONTINUE READING

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