We characterize the equilibrium manifold of an economy when initial endowments can be individually observed. We adopt a local, "differentiable" perspective. We derive necessary and sufficient conditions that characterize the equilibrium manifold, and we show that, if these conditions are...

Monetary and fiscal policy do not determine the stochastic path of prices: in the absence of financial policy, there remains indeterminacy indexed by an arbitrary probability measure over the set of states of the world. With an interest rate policy, and only if the asset market is complete,...

We consider a cash-in-advance economy under uncertainty in which monetary policy sets either short-term nominal interest rates or money supplies. We show that both the initial price level and the distribution of the inflation rate up to its expectation are indeterminate, regardless of the degree...