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M. Otaki, “A Pure Theory of Aggregate Price Determination,” Theoretical Economics Letters, Vol. 1, No. 3, 2011, pp. 122-128. doi:10.4236/tel.2011.13026
has been cited by the following article:
TITLE: The Role of Money: Credible Asset or Numeraire?
AUTHORS: Masayuki Otaki
KEYWORDS: Neutrality of Money; Credibility of Money; Multiplicity of Rational Expectation Equilibrium
JOURNAL NAME: Theoretical Economics Letters, Vol.2 No.2, May 23, 2012
ABSTRACT: It is well known that money is neutral if 1) people hold the extraneous belief that it is an only numeraire and does not possess intrinstic value, and 2) new money is injected into an economy as its own interest in the OLG model under perfect information (Lucas [1] Theorem (2)). We find that whenever 1) is not satisfied and money is rationally held to have substance value, money becomes non-neutral even if we use the same model as Lucas [1].
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