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Toward a monetary theory of the market economy. A study of Money and Price Theory


  • Ludovic A. JULIEN


  • Fabrice TRICOU1



This text examines the monetary market economy model developed by Benetti and Cartelier (2001). The authors construct a pure exchange monetary economy within a general equilibrium framework. Money is crucial in determining market prices and in coordinating transactions. This monetary approach of markets exhibits an essential feature of a market economy: the decentralization of actions and thus disequilibrium analysis. Individual disequilibria are caused by mistaken expectations. We emphasize the properties of this monetary economy and discuss the approach retained. The model is original and relevant, despite two shortcomings: the formation of expectations and its generalization to more complex market economies.

Suggested Citation

  • Ludovic A. JULIEN & Fabrice TRICOU1, 2007. "Toward a monetary theory of the market economy. A study of Money and Price Theory," Cahiers d’économie politique / Papers in Political Economy, L'Harmattan, issue 52, pages 83-104.
  • Handle: RePEc:cpo:journl:y:2007:i:52:p:83-104

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    JEL classification:

    • B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies
    • D41 - Microeconomics - - Market Structure, Pricing, and Design - - - Perfect Competition
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General


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