Indeterminacy of rational expectations equilibria in sequential financial markets

Paola Donati

No 262, Working Paper Series from European Central Bank

Abstract: We provide a general characterization of the structure of rational expectations equilibria of any degree of revelation for pure exchange, sequential economies, with finitely many states of private information, an incomplete financial market and nominal assets. We estimate the dimension of the rational expectations equilibria for any degree of revelation. Then, we show how a central bank, by deciding on the money supply, may affect the revelation of information at equilibrium. JEL Classification: D52, D80, D82, E52

Keywords: incomplete markets; indeterminacy; Information revelation; monetary policy (search for similar items in EconPapers)
Date: 2003-09
Note: 357984
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.ecb.europa.eu//pub/pdf/scpwps/ecbwp262.pdf (application/pdf)

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: https://EconPapers.repec.org/RePEc:ecb:ecbwps:2003262

Access Statistics for this paper

More papers in Working Paper Series from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().