Indeterminacy of rational expectations equilibria in sequential financial markets

We provide a general characterization of the structure of rational expectations equilibria of any degree of revelation for pure exchange, sequential economies, with deffinitely many states of private information, an incomplete financial market and nominal assets. We estimate the dimension of the rational expectations equilibria for any degree of revelation. Then, we show how a central bank, by deciding on the money supply, may affect the revelation of information at equilibrium.

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Year of publication:	2003-09-01
Authors:	Donati, Paola
Publisher:	European Central Bank
Subject:	Asymmetrische Information \| Asymmetric information \| Finanzmarkt \| Financial market \| Geldpolitik \| Monetary Policy \| Rationale Erwartung \| Rational expectations \| Theorie \| Theory \| Unvollkommener Markt \| Incomplete market \| Zentralbank \| Central Bank

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Extent:	517120 bytes 46 p. application/pdf
Series:	Working paper series / European Central Bank ; 262
Type of publication:	Book / Working Paper
Language:	English
Classification:	D52 - Incomplete Markets ; D80 - Information and Uncertainty. General ; D82 - Asymmetric and Private Information ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; Monetary Policy ; Financial Markets. General Resources ; Currency. Monetary policy ; Investment returns. Financial market. Interest rates ; Individual Working Papers, Preprints
Source:	ArchiDok

Persistent link: https://www.econbiz.de/10009635915