RIEB Discussion Paper Series No.2019-03

Title

On the Real Determinacy and Indeterminacy of Stationary Equilibria in Monetary Models

Abstract

It is known that stationary equilibria are indeterminate in some monetary models, especially in money search models with divisible money. However, most of the indeterminacy results are limited to the case that money holdings distributions have finite supports. In the case of infinite supports, both determinacy and indeterminacy results are known. In this paper, using the Borsuk-Ulam theorem in Banach Space, I investigate what determines the differences.

Keywords

Real Determinacy, Real Indeterminacy, Monetary Search Model, All-Pay Auction, Divisible Money, Infinite Dimensional Space, Borsuk-Ulam Theorem

JEL Classification

C78, D51, D83, E40

Inquiries

Kazuya KAMIYA
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: +81-78-803-7036
FAX: +81-78-803-7059