Barnett, Richard C.; Bhattacharya, Joydeep; Bunzel, Helle - School of Economics and Management, University of Aarhus - 2007
In an overlapping generations model, momentary equilibria are defined as points that lie on the intergenerational offer … of the model. The literature has always ruled out such paths. This paper studies a pure-exchange monetary overlapping … generations economy in which real balances cycle forever between momentary equilibrium points. The novelty is to show that …