Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
957599 | Journal of Economic Theory | 2010 | 10 Pages |
Abstract
The framework in Lagos and Wright (2005) [20] combining decentralized and centralized markets is used extensively in monetary economics. Much is known about that model, but there is a loose end: only under special assumptions about bargaining power or decentralized market preferences has it been shown that the monetary steady state is unique. For general decentralized market utility and bargaining, I prove uniqueness for generic parameters with fiat money, and for all parameters with commodity money. As a corollary, I get monotone comparative statics.
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Randall Wright,