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Article
Minimum consumption requirements and cycles in an overlapping generations model of money [Resurrecting Equilibria Through Cycles]
Economics Working Papers (2002–2016)
  • Richard C. Barnett, Villanova University
  • Joydeep Bhattacharya, Iowa State University
  • Helle Bunzel, Iowa State University
Document Type
Working Paper
Publication Date
7-26-2007
Working Paper Number
WP #07017, July 2007; Old working paper #12834
Abstract

This paper studies a pure-exchange monetary overlapping generations economy in which young and old agents face exogenous minimum consumption requirements, and money is the only asset. The presence of the minimum consumption requirement on the old is shown to produce multiperiodic monetary equilibria in which real balances cycle forever between "momentary" equilibrium points (those which generate monetary sequences that potentially violate equilibrium strictures asymptotically).

Disciplines
File Format
application/pdf
Length
20 pages
File Function
Title per author-submitted metadata: "Minimum consumption requirements and cycles in an overlapping generations model of money". Title on title page: "Resurrecting equilibria through cycles".
Citation Information
Richard C. Barnett, Joydeep Bhattacharya and Helle Bunzel. "Minimum consumption requirements and cycles in an overlapping generations model of money [Resurrecting Equilibria Through Cycles]" (2007)
Available at: http://works.bepress.com/helle-bunzel/4/