Collateral monetary equilibrium with liquidity constraints in an infinite horizon economy

Ngoc-Sang Pham

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: This paper considers an infinite-horizon monetary economy with collateralized assets. A Central BanK lends money to households by creating short- and long-term loans. Households can deposit or borrow money on both short- and long-term maturity loans. If households want to sell a financial asset, they are required to hold certain commodities as collateral. They face a cash-in-advance constraints when buying commodities and financial assets. Under Uniform or Sequential Gains to Trade Hypothesis, the existence of collateral monetary equilibrium is ensured. I also provide some properties of equilibria, including the liquidity trap

Keywords: Monetary economy; liquidity constraint; collateralized asset; infinite horizon; liquidity trap (search for similar items in EconPapers)
JEL-codes: C62 D52 E5 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2013-07, Revised 2013-09
New Economics Papers: this item is included in nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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ftp://mse.univ-paris1.fr/pub/mse/CES2013/13055R.pdf (application/pdf)

Related works:
Working Paper: Collateral monetary equilibrium with liquidity constraints in an infinite horizon economy (2013)
Working Paper: Collateral monetary equilibrium with liquidity constraints in an infinite horizon economy (2013)
Working Paper: Collateral monetary equilibrium with liquidity constraints in an infinite horizon economy (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:13055r

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