Generic determinacy and money non-neutrality of international monetary equilibria

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• 作者：Dimitrios P. Tsomocos
• 关键词：Determinacy ; Exchange rates ; Liquid wealth ; Non-neutrality ; Monetary policy
• 刊名：Journal of Mathematical Economics
• 出版年：2008
• 出版时间：July 2008
• 年：2008
• 卷：44
• 期：7-8
• 页码：866-887
• 全文大小：293 K

文摘

I address the issue of the ‘number’ of international monetary equilibria that the international finance model of Geanakoplos and Tsomocos (2002) possesses. The mainstream competitive model has locally unique equilibria with respect to the real side of the economy; however, it manifests nominal indeterminacy. Kareken and Wallace [Kareken, J., Wallace, N., 1981. On the Indeterminacy of Equilibrium Exchange Rates. Q. J. Econ. 96, 207–222] extend the O.L.G. indeterminacy result to a monetary model of the international economy. However, the role of monetary sector together with the market and agent heterogeneity remove real and nominal indeterminacy in the Geanakoplos and Tsomocos model. In particular, nominal indeterminacy abruptly disappears when private liquid wealth is non-zero. Finally, monetary policy becomes non-neutral since monetary changes affect nominal variables which in turn determine different real allocations.