Limited information, money, and competitive equilibrium
AbstractIn an overlapping generations model with borrowing and lending, uncertainty, and asymmetric information, fiat money may be essential to the existence of a competitive equilibrium. It may also serve to enhance the information of economic agents in a well-defined sense. In addition, the model presented provides suggestions about why the presence of valued fiat currency is essential to existence of equilibrium, even though in equilibrium perfect substitutes for money may exist.
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Bibliographic InfoPaper provided by Federal Reserve Bank of Minneapolis in its series Working Papers with number 204.
Date of creation: 1985
Date of revision:
Other versions of this item:
- Bruce Smith, 1986. "Limited Information, Money, and Competitive Equilibrium," Canadian Journal of Economics, Canadian Economics Association, vol. 19(4), pages 780-97, November.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wilson, Charles, 1977. "A model of insurance markets with incomplete information," Journal of Economic Theory, Elsevier, vol. 16(2), pages 167-207, December.
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- Williamson, Steve & Wright, Randall, 1994.
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- Steve Williamson & Randall Wright, 1991. "Barter and monetary exchange under private information," Staff Report 141, Federal Reserve Bank of Minneapolis.
- Williamson, S. & Wright, R., 1991. "Barter and Monetary Exchange Under Private Information," University of Western Ontario, The Centre for the Study of International Economic Relations Working Papers 9107, University of Western Ontario, The Centre for the Study of International Economic Relations.
- Smith, Bruce D., 1984.
"Money, nonconvex preferences, and the existence of equilibrium: A note,"
Journal of Economic Theory,
Elsevier, vol. 32(2), pages 359-366, April.
- Bruce D. Smith, 1983. "Money, nonconvex preferences, and the existence of equilibrium: a note," Working Papers 218, Federal Reserve Bank of Minneapolis.
- Jafarey, Saqib & Rupert, Peter, 2001. "Limited Commitment, Money, and Credit," Journal of Economic Theory, Elsevier, vol. 99(1-2), pages 22-58, July.
- Bruce D. Smith, 1982. "Money as a medium of transaction in the overlapping generations model," Working Papers 216, Federal Reserve Bank of Minneapolis.
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