CFDP 1427R

Determinacy with Nominal Assets and Outside Money

Author(s): 

Publication Date: June 2003

Revision Date: November 2004

Pages: 29

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, Determinacy

JEL Classification Codes:  D50, E40, E50, E58

Note: 

Published in Economic Theory (January 2006), 27(1): 79-106 [DOI]