Real indeterminacy of stationary equilibria in matching models with divisible money

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jmateco.2005.12.004 Byline: Kazuya Kamiya (a), Takashi Shimizu (b) Keywords: Real indeterminacy; Matching model; Divisible money Abstract: In this paper, it is shown that real indeterminacy of stationary equilibria generically arises in most matching models with perfectly divisible fiat money. In other words, the real indeterminacy follows from the condition for stationarity of money holdings, and surprisingly it has nothing to do with the other specifications, e.g., the bargaining procedures, of the models. Author Affiliation: (a) Faculty of Economics, University of Tokyo, Bunkyo-ku, Tokyo 113-0033, Japan (b) Faculty of Economics, Kansai University, 3-3-35 Yamate-cho, Suita-shi, Osaka 564-8680, Japan Article History: Received 4 July 2005; Accepted 8 December 2005 Article Note: (footnote) [star] This paper is a version of the manuscript originally circulated under the title 'Real Indeterminacy of Stationary Equilibria in Matching Models with Media of Exchange.'