IDEAS home Printed from https://ideas.repec.org/a/bla/metroe/v73y2022i1p126-143.html
   My bibliography  Save this article

Numéraire problems and market adjustments

Author

Listed:
  • Sergio Parrinello

Abstract

Firstly, this paper makes a distinction between two notions of numéraire in order to clarify the problem of market equilibrium which depends on the choice of a standard of value. This problem has recently re‐emerged, although it smoldered before and during the “Two Cambridge Controversies” on capital theory in the Seventies. Secondly, it presents a collection of equilibrium/disequilibrium analysis which exhibits numéraire dependence. Thirdly, it takes a neo‐Walrasian model of non‐monetary general equilibrium as a benchmark to argue that a prominent role of numéraire should be attributed to fiat money in the analysis of market adjustment. Such a redirection of focus would avoid some typical cases of numéraire dependence that characterize a frictionless barter economy.

Suggested Citation

  • Sergio Parrinello, 2022. "Numéraire problems and market adjustments," Metroeconomica, Wiley Blackwell, vol. 73(1), pages 126-143, February.
    • Handle: RePEc:bla:metroe:v:73:y:2022:i:1:p:126-143
    DOI: 10.1111/meca.12357
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/meca.12357
    Download Restriction: no
    File URL: https://libkey.io/10.1111/meca.12357?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jaskold Gabszewicz, Jean & Vial, Jean-Philippe, 1972. "Oligopoly "A la cournot" in a general equilibrium analysis," Journal of Economic Theory, Elsevier, vol. 4(3), pages 381-400, June.
    2. Srinivasan, T.N. & Kletzer, K., 1994. "Price Normalization and Equilibria in General Equilibrium Models of International Trade Under Imperfect Competition," Papers 710, Yale - Economic Growth Center.
    3. Birgit Grodal & Egbert Dierker, 1999. "The price normalization problem in imperfect competition and the objective of the firm," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 14(2), pages 257-284.
    4. Burmeister,Edwin, 1980. "Capital Theory and Dynamics," Cambridge Books, Cambridge University Press, number 9780521297035, June.
    5. Takashi Negishi, 1961. "Monopolistic Competition and General Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 28(3), pages 196-201.
    6. Edwin Burmeister & Ngo Van Long, 1977. "On Some Unresolved Questions in Capital Theory: An Application of Samuelson's Correspondence Principle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 91(2), pages 289-314.
    7. Saverio M. Fratini, 2019. "Neoclassical theories of stationary relative prices and the supply of capital," Metroeconomica, Wiley Blackwell, vol. 70(4), pages 723-737, November.
    8. F. H. Hahn, 1966. "Equilibrium Dynamics with Heterogeneous Capital Goods," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(4), pages 633-646.
    9. Ross M. Starr, 2012. "Why is there Money?," Books, Edward Elgar Publishing, number 13763.
    10. Christian Bidard & Guido Erreygers, 2020. "Exhaustible Resources and Classical Theory," Post-Print hal-02478428, HAL.
    11. Saverio M. Fratini, 2013. "Real W icksell Effect, Demand for Capital and Stability," Metroeconomica, Wiley Blackwell, vol. 64(2), pages 346-360, May.
    12. P. K. Newman, 1959. "Some Notes on Stability Conditions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 27(1), pages 1-9.
    13. Parrinello, Sergio, 2020. "Notes on the classical theory of normal prices: exhaustible natural resources and numéraire dependence," Centro Sraffa Working Papers CSWP41, Centro di Ricerche e Documentazione "Piero Sraffa".
    14. Opocher,Arrigo & Steedman,Ian, 2015. "Full Industry Equilibrium," Cambridge Books, Cambridge University Press, number 9781107097797, June.
    15. Sergio Parrinello, 2005. "Intertemporal Competitive Equilibrium, Capital And The Stability Of Tâtonnement Pricing Revisited," Metroeconomica, Wiley Blackwell, vol. 56(4), pages 514-531, November.
    16. Kurz, Heinz D. & Salvadori, Neri, 2000. "Economic dynamics in a simple model with exhaustible resources and a given real wage rate," Structural Change and Economic Dynamics, Elsevier, vol. 11(1-2), pages 167-179, July.
    17. Arrow, Kenneth J., 1980. "Real and Nominal Magnitudes in Economics," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 15(4), pages 773-783, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mercenier, Jean, 1995. "Nonuniqueness of Solutions in Applied General Equilibrium Models with Scale Economies and Imperfect Competition," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 6(1), pages 161-177, June.
    2. Rudy Colacicco, 2015. "Ten Years Of General Oligopolistic Equilibrium: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 29(5), pages 965-992, December.
    3. Esteban-Bravo, Mercedes, 2000. "Existence and computation of a Cournot-Walras equilibrium," DES - Working Papers. Statistics and Econometrics. WS 9968, Universidad Carlos III de Madrid. Departamento de Estadística.
    4. Chang, Winston W. & Chen, Tai-Liang & Saito, Tetsuya, 2021. "Formation of symmetric free-trade blocs, optimal tariff structure, and world welfare," Journal of Asian Economics, Elsevier, vol. 77(C).
    5. Saverio M. Fratini, 2019. "On The Second Stage Of The Cambridge Capital Controversy," Journal of Economic Surveys, Wiley Blackwell, vol. 33(4), pages 1073-1093, September.
    6. Klaus Ritzberger, 2007. "Price normalization under imperfect competition," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 33(2), pages 365-368, November.
    7. Mercenier, Jean & Schmitt, Nicolas, 1996. "On Sunk Costs and Trade Liberalization in Applied General Equilibrium," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(3), pages 553-571, August.
    8. Jean-Marc Bonnisseau & Michael Florig, 2005. "Non-existence of Duopoly Equilibria: A Simple Numerical Example," Journal of Economics, Springer, vol. 85(1), pages 65-71, July.
    9. Suleyman Basak & Anna Pavlova, 2005. "Monopoly Power and the Firm’s Valuation: A Dynamic Analysis of Short versus Long-Term Policies," Studies in Economic Theory, in: Alessandro Citanna & John Donaldson & Herakles Polemarchakis & Paolo Siconolfi & Stephan E. Spear (ed.), Essays in Dynamic General Equilibrium Theory, pages 1-34, Springer.
    10. Dehez, Pierre & Dreze, Jacques H. & Suzuki, Takashi, 2003. "Imperfect competition a la Negishi, also with fixed costs," Journal of Mathematical Economics, Elsevier, vol. 39(3-4), pages 219-237, June.
    11. Tuinstra, J., 2000. "Price adjustment in a model of monopolistic competition," CeNDEF Working Papers 00-13, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance.
    12. Saverio M. Fratini, 2020. "Interest, profit and saving in Arrow-Debreu equilibrium models," Bulletin of Political Economy, Bulletin of Political Economy, vol. 14(1), pages 39-53, June.
    13. Harvey Gram & G. C. Harcourt, 2017. "Joan Robinson and MIT," History of Political Economy, Duke University Press, vol. 49(3), pages 437-450, September.
    14. Luigi L. Pasinetti, 2000. "Critique of the neoclassical theory of growth and distribution," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 53(215), pages 383-431.
    15. J. Peter Neary, 2016. "International Trade in General Oligopolistic Equilibrium," Review of International Economics, Wiley Blackwell, vol. 24(4), pages 669-698, September.
    16. Stefano Demichelis & Klaus Ritzberger, 2007. "Corporate Control and the Stock Market," Carlo Alberto Notebooks 60, Collegio Carlo Alberto.
    17. Jean-Pascal Bénassy, 2006. "Dynamic models with non clearing markets," Working Papers halshs-00590433, HAL.
    18. Thomas Christiaans, 2001. "Economic Growth, the Mathematical Pendulum, and a Golden Rule of Thumb," Volkswirtschaftliche Diskussionsbeiträge 94-01, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
    19. Neil Wallace, 1977. "Samuelson's pure consumption loans model with constant returns-to-scale storage," Staff Report 23, Federal Reserve Bank of Minneapolis.
    20. Shirai, Koji, 2010. "An existence theorem for Cournot-Walras equilibria in a monopolistically competitive economy," Journal of Mathematical Economics, Elsevier, vol. 46(6), pages 1093-1102, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:metroe:v:73:y:2022:i:1:p:126-143. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0026-1386 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.