A uniqueness proof for monetary steady state

Randall Wright

Journal of Economic Theory, 2010, vol. 145, issue 1, 382-391

Abstract: The framework in Lagos and Wright (2005) [20] combining decentralized and centralized markets is used extensively in monetary economics. Much is known about that model, but there is a loose end: only under special assumptions about bargaining power or decentralized market preferences has it been shown that the monetary steady state is unique. For general decentralized market utility and bargaining, I prove uniqueness for generic parameters with fiat money, and for all parameters with commodity money. As a corollary, I get monotone comparative statics.

Keywords: Monetary; equilibrium; Uniqueness (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (39)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:145:y:2010:i:1:p:382-391

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