Abstract

This note shows that there are monetary equilibria in the model of overlapping generations that are in the core. Some equilibria have positive stocks of outside money in every generation. These equilibria are thus self-enforcing, and introducing money into an economy need not be tantamount to contriving a new social institution designed to enforce sequential contracts.

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Economics

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Economics Commons

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URL: https://digitalcommons.calpoly.edu/econ_fac/49