CIRJE-F-167 "Real Indeterminacy of Stationary Equilibria in Matching Models with Media of Exchange"
Author Name Kamiya, Kazuya and Takashi Shimizu
Date August 2002
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Remarks Revised in June 2004; subsequently published as "Real Indeterminacy of Stationary Equilibria in Matching Models with Divisible Money", Journal of Mathematical Economics, 42, Issues 5-6, August 2006, pp. 594-617.
Abstract

In this paper, it is shown that real indeterminacy of stationary equilibria generically arises in most matching models with perfectly divisible media of exchange. In other words, the real indeterminacy follows from the condition for stationarity of holdings of media of exchange. Moreover, we present a new technique to prove the existence of stationary equilibria; especially, it is applicable to the case that both money and goods are perfectly divisible.