SFB 303 Discussion Paper No. A - 501

Author: Gottardi, T., and P. Hens
Title: On the Disaggregation of Excess Demand Functions when Markets are Incomplete: The Case of Nominal Returns
Abstract: We demonstrate that locally, Walras Law and Homogeneity charac terize the structure of market excess demand functions when financial markets are incomplete and assets' returns are nominal. As an application it is shown that in contrast to the complete markets case when markets are incomplete there is no general rule describing the effects which monetary policy has on asset prices.
Keywords: excess demand functions, incomplete markets, monetary policy
JEL-Classification-Number: D 52, C 62
Creation-Date: 1995
URL: ../1995/a/bonnsfa501.pdf

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