Showing papers by "Nobuhiro Kiyotaki published in 1991"

More on money as a medium of exchange

Abstract: We extend the analysis of Kiyotaki and Wright, who study an economy in which the different commodities that serve as media of exchange are determined endogenously. Kiyotaki and Wright consider only symmetric, steady-state, pure-strategy equilibria, and find that for some parameter values no such equilibria exist. We consider mixed-strategy equilibria and dynamic equilibria. We prove that a steady-state equilibrium exists for all parameter values and that the number of steady-state equilibria is generically finite. We also show, however, that there may be a continuum of dynamic equilibria. Further, some dynamic equilibria display cycles.

[The EMS, the EMU, and the Transition to a Common Currency]: Comment

Abstract: The idea of reducing real wages by \"one last devaluation\" is attractive if overvaluation is the difficulty now. Then entering a firm arrangement with a once-and-for-all depreciation solves the real wage problem just at the time where yet another round is no longer possible so that credibility issues do not lie ahead. Of course, this theory is only plausible only if nominal rigidities are the problem. Throughout the paper there is little room for such rigidities and, accordingly, in the perspective of the Froot-