Rankin, Neil - C.E.P.R. Discussion Papers - 1987
Monetary and fiscal policy are introduced into a version of Hart's "Keynesian features" model of imperfect competition …. Imperfect competition takes the form of Cournot-Nash quantity-setting trade unions, seeking to maximise their members' total …-elastic. Thus in Walrasian equilibrium, not only imperfect competition but also non-neutral money are needed for monetary …