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Infinitely Lived Representative Agent Exchange Economy with Myopia

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  • Stefano Lovo

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

Abstract

We consider a family of infinitely long lived representative agent economy where, each period, agents can only decide consumption plan of finite dimension n. It is shown that myopia generates indeterminacy and monetary equilibrium in infinitely lived representative economy. Any invertible dynamics with at most one monetary steady state that is increasing in the quantity of money can represent the set of equilibria of an appropriate myopic economy.

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  • Stefano Lovo, 2000. "Infinitely Lived Representative Agent Exchange Economy with Myopia," Working Papers hal-00598167, HAL.
    • Handle: RePEc:hal:wpaper:hal-00598167
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    References listed on IDEAS

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    Cited by:

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    2. Dmitri Vinogradov, 2004. "Macroeconomic evolution aftera shock: the role of financial intermediation," Money Macro and Finance (MMF) Research Group Conference 2003 106, Money Macro and Finance Research Group.

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