Author(s)

Masayuki Otaki

Institute of Social Science, University of Tokyo, Tokyo, Japan.

This short article shows that the functional equation on the equilibrium price function is more complicated than that considered by Lucas [1], and that modification is required to complete the proof. Furthermore, we shall provide a sufficient condition that guarantees the uniqueness of the equilibrium price function.

Neutrality of Money; Functional Equation; Contraction Mapping; A Sufficient Condition for the Unique Equilibrium Price Function

M. Otaki, "A Study on Lucas’ “Expectations and the Neutrality of Money’’," Theoretical Economics Letters, Vol. 2 No. 5, 2012, pp. 438-440. doi: 10.4236/tel.2012.25081.