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
This paper establishes that the proï¿½t-seeking activities of private intermediaries can ensure Pareto eï¿½ciency in the standard pure-exchange monetary overlapping generations economy without the need for government monetary or ï¿½scal policy intervention. Moreover, these proï¿½t-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 proï¿½t 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)
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Published in Journal of Economic Dynamics and Control 1998, vol. 22, pp. 1533-1574
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Journal Article: Active intermediation in a monetary overlapping generations economy1 (1998)
Working Paper: Active Intermediation in a Monetary Overlapping Generations Economy (1998)
Working Paper: Active intermediation in a monetary overlapping generations economy (1998)
Working Paper: ``Active Intermediation in a Monetary Overlapping Generations Economy'' (1993)
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:1227
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