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Money in search equilibrium, in competitive equilibrium, and in competitive search equilibrium

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  • Guillaume Rocheteau
  • Randall Wright

Abstract

We compare three market structures for monetary economies: bargaining (search equilibrium); price taking (competitive equilibrium); and price posting (competitive search equilibrium). We also extend work on the microfoundations of money by allowing a general matching technology and entry. We study how equilibrium and the effects of policy depend on market structure.

Suggested Citation

  • Guillaume Rocheteau & Randall Wright, 2004. "Money in search equilibrium, in competitive equilibrium, and in competitive search equilibrium," Working Papers (Old Series) 0405, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwp:0405
    DOI: 10.26509/frbc-wp-200405
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    More about this item

    Keywords

    Money; Equilibrium (Economics);

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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