More on money as a medium of exchange

Timothy Kehoe, Nobuhiro Kiyotaki and Randall Wright

No 140, Staff Report from Federal Reserve Bank of Minneapolis

Abstract: We extend the analysis of Kiyotaki and Wright, who study an economy in which the different commodities that serve as media of exchange are determined endogenously. Kiyotaki and Wright consider only symmetric, steady-state, pure-strategy equilibria, and find that for some parameter values no such equilibria exist. We consider mixed-strategy equilibria and dynamic equilibria. We prove that a steady-state equilibrium exists for all parameter values and that the number of steady-state equilibria is generically finite. We also show, however, that there may be a continuum of dynamic equilibria. Further, some dynamic equilibria display cycles.

Keywords: Money (search for similar items in EconPapers)
Date: 1991
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Citations: View citations in EconPapers (5)

Published in Economic Theory (Vol 3, Num 2, 1993, pp. 297-314)

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Journal Article: More on Money as a Medium of Exchange (1993)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmsr:140

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