Money and Bonds: An Equivalence Theorem

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Narayana R. Kocherlakota;
  • Subject: Money - Mathematical models ; Bonds

This paper considers four models in which immortal agents face idiosyncratic shocks and trade only a single risk-free asset over time. The four models specify this single asset to be private bonds, public bonds, public money, or private money respectively. I prove that,... View more
  • References (17)
    17 references, page 1 of 2

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