ON RANDOM MATCHING, MONETARY EQUILIBRIA, AND SUNSPOTS

Huberto M. Ennis ()

Macroeconomic Dynamics, 2001, vol. 5, issue 01, pages 132-142

Abstract: We study comparative statics results for the steady-state monetary equilibria of a simple random matching model of money with endogenous prices and no extrinsic uncertainty. Some of the results appear counterintuitive (both when take-it-or-leave-it offer or when Nash Rubinstein bargaining is used in the model). Consistency of the equilibrium expectations causes the partial equilibrium intuitions to be reversed. We then proceed to apply the new insights to the analysis of sunspot equilibria in these type of models of bilateral trade with money.

Date: 2001

Downloads: (external link)
http://journals.cambridge.org/abstract_S1365100501018065 link to article abstract page (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:cup:macdyn:v:5:y:2001:i:01:p:132-142_01

Access Statistics for this article

More articles in Macroeconomic Dynamics from Cambridge University Press
Address: The Edinburgh Building, Shaftesbury Road, Cambridge CB2 2RU UK
Series data maintained by Mike Eden ().