Equilibrium of incomplete markets with money and intermediate banking system

Monique Florenzano, Stella Kanellopoulou () and Yiannis Vailakis
Additional contact information
Stella Kanellopoulou: Centre d'Economie de la Sorbonne, http://cermsem.univ-paris1.fr

Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1)

Abstract: This paper studies a simple stochastic two-period general equilibrium model with money, an incomplete market of nominal assets, and a competitive banking system, intermediate between consumers and a Central Bank. There is a finite number of agents, consumers and banks. Default is not permitted. The public policy instruments are, besides real taxes implicit in the model, public debt and creation of money, both implemented at the first period. The equilibrium existence is established under a "Gains to trade" hypothesis and the assumption that banks have a nonzero endowment of money at each date-event of the model

Keywords: Competitive banking system; incomplete markets; nominal assets; money; monetary equilibrium; cash-in-advance constraints; public debt (search for similar items in EconPapers)
JEL-codes: C61 C62 D20 D46 D51 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2006-11
New Economics Papers: this item is included in nep-ban, nep-cba, nep-dge, nep-mac and nep-mon
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://halshs.archives-ouvertes.fr/halshs-00112209 (application/pdf)

Related works:
Working Paper: Equilibrium of incomplete markets with money and intermediate banking system (2006)
Working Paper: Equilibrium of incomplete markets with money and intermediate banking system (2006)
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:mse:wpsorb:b06068

Access Statistics for this paper

More papers in Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1) Contact information at EDIRC.
Bibliographic data for series maintained by Lucie Label ().