Pareto improving monetary policy in incomplete markets

We show that for generic economies, every equilibrium admits Pareto improving monetary policy, even with multiple commodities per state. The main assumption is that asset incompleteness be intermediate, in that household heterogeneity does not exceed the number of assets present and absent. We argue this as a special case of the general framework in Turner (2003b) for proving the generic existence of Pareto improving taxes.

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Year of publication:	2006
Authors:	Turner, Sergio ; Tumennasan, Norovsambuu
Publisher:	Providence, RI : Brown University, Department of Economics
Subject:	Geldpolitik \| Unvollkommener Markt \| Mikroökonomische Konsumfunktion \| Slutsky Gleichung \| Pareto-Optimum \| Theorie \| Pareto improvement \| Slutsky \| monetary \| incomplete \| generic

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Series:	Working Paper ; 2006-04
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	508950015 [GVK] hdl:10419/80184 [Handle]
Classification:	D52 - Incomplete Markets ; D61 - Allocative Efficiency; Cost-Benefit Analysis ; E52 - Monetary Policy (Targets, Instruments, and Effects)
Source:	EconStor

Persistent link: https://www.econbiz.de/10010318953