Nakajima, Tomoyuki; Polemarchakis, Herakles - In: Review of Economic Studies 72 (2005) 1, pp. 223-246
We study whether monetary economies display nominal indeterminacy: equivalently, whether monetary policy determines the path of prices under uncertainty. In a simple, stochastic, cash-in-advance economy, we find that indeterminacy arises and is characterized by the initial price level and a...
