Existence and multiplicity of temporary equilibria under nominal price rigidities

Jacques Dreze

Economic Theory, 2016, vol. 62, issue 1, No 13, 279-298

Abstract: Abstract This paper proves existence of a multiplicity of equilibria in a two-period TGE model with money and nominal rigidities. Households have incomplete preferences and firms reach decisions through the “control principle”. The multiple equilibria belong to an inflation–unemployment locus allowing for a Phillips curve or stagflation.

Keywords: Temporary general equilibrium; Incomplete preferences; Firm behaviour; Price rigidities (search for similar items in EconPapers)
JEL-codes: D11 D21 D51 D52 (search for similar items in EconPapers)
Date: 2016
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Working Paper: Existence and multiplicity of temporary equilibria under nominal price rigidities (2016)
Working Paper: Existence and multiplicity of temporary equilibria under nominal price rigidities (2013)
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DOI: 10.1007/s00199-015-0898-3

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