Working Paper Number
WP #07017, July 2007; Old working paper #12834
This paper studies a pure-exchange monetary overlapping generations economy in which young and old agents face exogenous minimum consumption requirements, and money is the only asset. The presence of the minimum consumption requirement on the old is shown to produce multiperiodic monetary equilibria in which real balances cycle forever between "momentary" equilibrium points (those which generate monetary sequences that potentially violate equilibrium strictures asymptotically).
Published as "Resurrecting equilibria through cycles in an overlapping generations model of money" in Journal of Macroeconomics, Vol. 32 no. 2 (June 2010): 515-526.
E31, E42, E63
Title per author-submitted metadata: "Minimum consumption requirements and cycles in an overlapping generations model of money". Title on title page: "Resurrecting equilibria through cycles".
Barnett, Richard C.; Bhattacharya, Joydeep; and Bunzel, Helle, "Minimum consumption requirements and cycles in an overlapping generations model of money [Resurrecting Equilibria Through Cycles]" (2007). Economics Working Papers (2002–2016). 107.