Dynamics, cycles and sunspot equilibria in \"genuinely dynamic, fundamentally disaggregative\" models of money

Ricardo Lagos and Randall Wright

No 210, Working Papers (Old Series) from Federal Reserve Bank of Cleveland

Abstract: This paper pursues a line of Cass and Shell, who advocate monetary models that are \"genuinely dynamic and fundamentally disaggregative\" and that incorporate \"diversity among households and variety among commodities.\" Recent search-theoretic models fit this description. The authors show that, like overlapping generations models, search models generate interesting dynamic equilibria, including cycles, chaos, and sunspot equilibria. This helps explain how alternative models are related and lends support to the notion that endogenous dynamics and uncertainty matter, perhaps especially in monetary economies. Th authors also suggest that such equilibria in search models may be more empirically relevant than in some other models.

Keywords: Monetary; theory (search for similar items in EconPapers)
Date: 2002
New Economics Papers: this item is included in nep-dge and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://doi.org/10.26509/frbc-wp-200210 Persistent link
https://www.clevelandfed.org/-/media/project/cleve ... t-equilibria-pdf.pdf Full text (application/pdf)

Related works:
Journal Article: Dynamics, cycles, and sunspot equilibria in 'genuinely dynamic, fundamentally disaggregative' models of money (2003)
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:fip:fedcwp:0210

Ordering information: This working paper can be ordered from

DOI: 10.26509/frbc-wp-200210

Access Statistics for this paper

More papers in Working Papers (Old Series) from Federal Reserve Bank of Cleveland Contact information at EDIRC.
Bibliographic data for series maintained by 4D Library ().