Abstract
A model of an exchange economy is presented where money is the only asset. It is shown that, under some assumptions, a short-run equilibrium exists if the traders’ price expectations do not depend ‘too much’ on current prices.
I would like to express my deep gratitude to Gérard Debreu for his encouragement throughout this research. I also wish to thank Truman Bewley, Richard Cornwall, Emmanuel Drandakis, Werner Hildenbrand, Henry Lavaill, Thierry de Montbrial and Roy Radner for many helpful suggestions. I am also indebted to Jacques Drèze, Roger Guesnerie, Frank Hahn, Serge-Christophe Kolm and Yves Younes for their comments on an earlier draft. They of course bear no responsibility for any remaining error.
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© 1974 International Economic Association
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Grandmont, JM. (1974). On the Short-Run Equilibrium in a Monetary Economy. In: Drèze, J.H. (eds) Allocation under Uncertainty: Equilibrium and Optimality. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-01989-2_12
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DOI: https://doi.org/10.1007/978-1-349-01989-2_12
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