CFDP 1427

Real Determinacy with Nominal Assets

Author(s): 

Publication Date: June 2003

Pages: 31

Abstract: 

We build a finite horizon model with inside and outside money, in which interest rates, price levels and commodity allocations are determinate, even though asset markets are incomplete and asset deliveries are purely nominal.

Keywords: 

Central bank, Inside money, Outside money, Incomplete assets, Monetary equilibrium, Real determinacy

JEL Classification Codes:  D50, E40, E50, E58