Multiplicity of monetary steady states

- We study a variant of the Lagos-Wright framework.
- We assume that the decentralized market opens twice in each period.
- We show that there may be multiple equilibria.
- The multiplicity comes from the nonconcavity of the value function.

We investigate a monetary model in which the centralized market opens once, but the decentralized markets open twice in each period. We show that there may be multiple stationary equilibria.