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An Alternative Approach to the Existence of Sunspot Equilibria

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  • Haim Abraham

Abstract

This paper offers an alternative approach to the existence of sunspot equilibria. The economy has a single perishable good and fiat money within an overlapping generations framework with two possible extraneous events. The analysis uses the dynamic adjustment of market prices during voluntary trade to establish paths of current spot prices whose limit points are […]

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  • Haim Abraham, 2006. "An Alternative Approach to the Existence of Sunspot Equilibria," Working Papers 034, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:034
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    References listed on IDEAS

    as
    1. Donaldson, John B. & Selden, Larry, 1981. "Arrow-Debreu preferences and the reopening of contingent claims markets," Economics Letters, Elsevier, vol. 8(3), pages 209-216.
    2. George William Evans, 2001. "Expectations in Macroeconomics Adaptive versus Eductive Learning," Revue économique, Presses de Sciences-Po, vol. 52(3), pages 573-582.
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    More about this item

    Keywords

    central bank; uncertainty;

    JEL classification:

    • D00 - Microeconomics - - General - - - General
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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