Real Indeterminacy of Stationary Monetary Equilibria in Centralized Economies

Kazuya Kamiya, So Kubota, Kayuna Nakajima

Research output: Contribution to journalArticlepeer-review


We show that real indeterminacy of stationary equilibria, by which the set of stationary equilibria is a continuum and the real allocation varies among equilibria, may arise in some general equilibrium models with fiat money. The conditions under which such equilibria arise are: (i) each household optimally saves a constant amount of money; and (ii) at least two households face different budget constraints. We present various models, including a decentralized money search model and a centralized model with a monopoly firm, to explain how these conditions lead to real indeterminacy. Finally, we present a policy that uniquely implements any desirable outcome.

Original languageEnglish
Pages (from-to)497-520
Number of pages24
JournalJapanese Economic Review
Issue number4
Publication statusPublished - 2017 Dec
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics


Dive into the research topics of 'Real Indeterminacy of Stationary Monetary Equilibria in Centralized Economies'. Together they form a unique fingerprint.

Cite this