Collateral monetary equilibrium with liquidity constraints in an infinite horizon economy

Ngoc-Sang Pham

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: This paper considers an infinite-horizon monetary economy with collateralized assets. A Central BanK lends money to households by creating short- and long-term loans. Households can deposit or borrow money on both short- and long-term maturity loans. If households want to sell a financial asset, they are required to hold certain commodities as collateral. They face a cash-in-advance constraints when buying commodities and financial assets. Under Uniform or Sequential Gains to Trade Hypothesis, the existence of collateral monetary equilibrium is ensured. I also provide some properties of equilibria, including the liquidity trap.

Keywords: Monetary economy; liquidity constraint; collateralized asset; infinite horizon; liquidity trap; Economie monétaire; contraintes de liquidité; trappe à liquidité; horizon infini (search for similar items in EconPapers)
Date: 2013-07
New Economics Papers: this item is included in nep-cba, nep-dge, nep-mac and nep-mon
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00848057
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Citations: View citations in EconPapers (6)

Published in 2013

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Related works:
Working Paper: Collateral monetary equilibrium with liquidity constraints in an infinite horizon economy (2013)
Working Paper: Collateral monetary equilibrium with liquidity constraints in an infinite horizon economy (2013)
Working Paper: Collateral monetary equilibrium with liquidity constraints in an infinite horizon economy (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-00848057

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