Economics at your fingertips  

Real Indeterminacy of Stationary Monetary Equilibria in Centralized Economies

Kazuya Kamiya, So Kubota and Kayuna Nakajima
Additional contact information
Kazuya Kamiya: Kobe University
So Kubota: Princeton University
Kayuna Nakajima: Bates White, LLC

The Japanese Economic Review, 2017, vol. 68, issue 4, No 5, 497-520

Abstract: Abstract We show that real indeterminacy of stationary equilibria, by which the set of stationary equilibria is a continuum and the real allocation varies among equilibria, may arise in some general equilibrium models with fiat money. The conditions under which such equilibria arise are: (i) each household optimally saves a constant amount of money; and (ii) at least two households face different budget constraints. We present various models, including a decentralized money search model and a centralized model with a monopoly firm, to explain how these conditions lead to real indeterminacy. Finally, we present a policy that uniquely implements any desirable outcome.

Keywords: D51; E40 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:

Ordering information: This journal article can be ordered from

DOI: 10.1111/jere.12145

Access Statistics for this article

The Japanese Economic Review is currently edited by Michihiro Kandori

More articles in The Japanese Economic Review from Springer
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2020-05-02
Handle: RePEc:spr:jecrev:v:68:y:2017:i:4:d:10.1111_jere.12145