Document Type

Working Paper

Publication Date


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).

Publication Status

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.

JEL Classification

E31, E42, E63

File Format



20 pages

File Function

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".

Included in

Economics Commons