Money and production, and liquidity trap

Pradeep Dubey and John Geanakoplos

International Journal of Economic Theory, 2006, vol. 2, issue 3‐4, 295-317

Abstract: We prove the existence of monetary equilibrium in a finite horizon economy with production. We also show that if agents expect the monetary authority to significantly decrease the supply of bank money available for short‐term loans in the future, then the economy will fall into a liquidity trap today.

Date: 2006
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https://doi.org/10.1111/j.1742-7363.2006.0038.x

Related works:
Working Paper: Money and Production, and Liquidity Trap (2006)
Working Paper: Money and Production, and Liquidity Trap (2006)
Working Paper: Money and Production, and Liquidity Trap (2006)
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