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
Other Persons:	Tumennasan, Norovsambuu (contributor)
Publisher:	[2006]: [S.l.] : SSRN

Extent:	1 Online-Ressource (26 p)
Type of publication:	Book / Working Paper
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 2006 erstellt
Other identifiers:	10.2139/ssrn.880784 [DOI]
Classification:	D52 - Incomplete Markets ; D61 - Allocative Efficiency; Cost-Benefit Analysis ; E52 - Monetary Policy (Targets, Instruments, and Effects)
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012734533