A note on the optimum quantity of money
Article Abstract:
The validity of the Bewley-type model (1983) is proven. The model, which looks at money as a tool to counter 'uninsurable idiosyncratic income fluctuations,' contradicts the traditional optimum quantity of money theory and shows that it is impossible to fully satisfy monetary demand. To support its premise, an example concerning the application of classic optimum quantity of money proposal is given. It highlights the effect of a negative distribution effect during the computation of the optimal interest rate.
Publication Name: The Journal of Mathematical Economics
Subject: Mathematics
ISSN: 0304-4068
Year: 1995
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The existence of equilibrium in incomplete markets and the objective function of the firm
Article Abstract:
Equilibrium in incomplete markets is affected by externalities which affects the unanimity of shareholders and the general objectives of the firm. These externalities includes individual shareholder's interests, concern for external implications of the firm's objectives and benefits derived from control. Equilibrium exists in complete markets without similar externalities because of unanimous shareholders decisions.
Publication Name: The Journal of Mathematical Economics
Subject: Mathematics
ISSN: 0304-4068
Year: 1996
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Real effects of money in general equilibrium
Article Abstract:
A general equilibrium model that outlines the real effect of money is presented. Money is modelled as both a vehicle of exchange and a standard of value. Monetary policy and the consequent increase or decrease of money supply are examined in relation to the general equilibrium allocation and the rates of interest. The hypothetical economy used incorporates large scale specialization and trade.
Publication Name: The Journal of Mathematical Economics
Subject: Mathematics
ISSN: 0304-4068
Year: 1992
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