Title of article :
Perfectlycompetitivebilateralexchangewithoutdiscounting$
Author/Authors :
Edward J.Green، نويسنده , , RuilinZhou ، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2010
Abstract :
In arandom-matchingeconomyoftraderswhomaximizecumulativeconsumption
(overtakingcriterion),thestationary,Markov,Bayesian-perfectequilibriumisstudied.
At suchequilibrium,tworesultshold:(1)perfectsubstitutabilitybetweencurrentand
future consumptionimpliesano-surpluscondition;and(2)bytheno-surplus
condition,thereisanominalpriceatwhichalltradesmustoccur.Theseresults
strengthentheseminalresultsof Ostroy(1973) regardingmonetarybilateralexchange
in twoways:theincentivecompatibilityoftheequilibriumtradingpatternis
establishedandalessroundabouttradingpatternenhanceswelfarebyenabling
consumptiontooccurmorefrequently
Keywords :
Monetary bilateralexchangeRandom matching
Journal title :
Journal of Monetary Economics
Journal title :
Journal of Monetary Economics
