Template-Type: ReDIF-Paper 1.0
Title: On Stationary Monetary Equilibria in Overlapping Generations Models with Incomplete Markets
Author-Name: Piero Gottardi

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Abstract: The objective of this paper is to study the stationary monetary 
 equilibria in a stochastic overlapping generations model with a general 
 incomplete asset structure. It is proved that a stationary equilibrium with 
 a non zero price of money generically exists and is locally isolated when 
 there is outside money; for an open set of economies the equilibrium money 
 prices will all be positive. The equilibrium is given a neat 
 characterization in terms of properties of the underlying state prices. 
 With only inside money there will be a continuum of equilibria instead; the 
 same is true with multiple currencies if at least one currency is in zero 
  net supply.
Series: Sonderforschungsbereich 303, University of Bonn, Germany

Length: 30 pages
Creation-Date: 1993-06
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Handle: RePEc:bon:bonsfa:416