TY - JOUR
T1 - Efficient monetary equilibrium
T2 - An overlapping generations model with nonstationary monetary policies
AU - Esteban, Joan
AU - Mitra, Tapan
AU - Ray, Debraj
PY - 1994/12
Y1 - 1994/12
N2 - This paper is concerned with the characterization of public debt policies that are consistent with competitive equilibria in which (i) money is positively priced, and (ii) intertemporal allocation is efficient. The framework used is an overlapping generations model with many goods, agents with two-period lifetimes, and nonstationary tax-transfer policies. We show, under some regularity conditions on such policies that the size of the public debt not growing “too fast” is both necessary and sufficient for the existence of an efficient monetary equilibrium. Journal of Economic Literature Classification Numbers: 021, 311, 321.
AB - This paper is concerned with the characterization of public debt policies that are consistent with competitive equilibria in which (i) money is positively priced, and (ii) intertemporal allocation is efficient. The framework used is an overlapping generations model with many goods, agents with two-period lifetimes, and nonstationary tax-transfer policies. We show, under some regularity conditions on such policies that the size of the public debt not growing “too fast” is both necessary and sufficient for the existence of an efficient monetary equilibrium. Journal of Economic Literature Classification Numbers: 021, 311, 321.
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U2 - 10.1006/jeth.1994.1073
DO - 10.1006/jeth.1994.1073
M3 - Article
AN - SCOPUS:0038198961
SN - 0022-0531
VL - 64
SP - 372
EP - 389
JO - Journal of Economic Theory
JF - Journal of Economic Theory
IS - 2
ER -