On the Real Determinacy and Indeterminacy of Stationary Equilibria in Monetary Models
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 fi nite supports. In the case of infi nite 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.
Real Determinacy, Real Indeterminacy, Monetary Search Model, All-Pay Auction, Divisible Money, Infi nite Dimensional Space, Borsuk-Ulam Theorem
C78, D51, D83, E40
Research Institute for Economics and Business Administration
Rokkodai-cho, Nada-ku, Kobe