Economic Theory Bulletin

, Volume 6, Issue 1, pp 115–128 | Cite as

Stationary inflation and Pareto efficiency with incomplete markets and a large open economy

  • Matthew Hoelle
Research Article


In a large open economy with pure exchange and incomplete markets, this paper characterizes necessary conditions under which monetary policies are compatible with Pareto efficiency.


Incomplete markets Asset span Monetary policy 

JEL Classification

E44 E52 F41 G15 


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Copyright information

© Society for the Advancement of Economic Theory 2017

Authors and Affiliations

  1. 1.Department of EconomicsPurdue UniversityWest LafayetteUSA

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