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Active Intermediation in an Monetary Overlapping Generations Economy

Mark Pingle () and Leigh Tesfatsion ()

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: This paper establishes that the pro�t-seeking activities of private intermediaries can ensure Pareto e�ciency in the standard pure-exchange monetary overlapping generations economy without the need for government monetary or �scal policy intervention. Moreover, these pro�t-seeking activities are shown to rule out all aperiodic and kperiodic cycles for k greater than 2. Contrary to much recent work on intermediation, the pro�t opportunities that arise for intermediaries in this context are not due to assumed frictions or asymmetric information. Rather, they are due to the dynamic open-ended structure of the economy, which permits debt roll-over. (C) 1998 Elsevier Science B.V. All rights reserved.

JEL-codes: C6 E2 E4 (search for similar items in EconPapers)
Date: 1998-01-01
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Published in Journal of Economic Dynamics and Control 1998, vol. 22, pp. 1533-1574

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Related works:
Journal Article: Active intermediation in a monetary overlapping generations economy1 (1998) Downloads
Working Paper: Active Intermediation in a Monetary Overlapping Generations Economy (1998)
Working Paper: Active intermediation in a monetary overlapping generations economy (1998) Downloads
Working Paper: ``Active Intermediation in a Monetary Overlapping Generations Economy'' (1993) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:1227

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