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AA00260492-20160000-0043  
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Title
Title Price rigidity and use of money  
Kana  
Romanization  
Other Title
Title  
Kana  
Romanization  
Creator
Name 永田, 良  
Kana ナガタ, リョウ  
Romanization Nagata, Ryo  
Affiliation 早稲田大学政治経済学術院  
Affiliation (Translated) Faculty of Political Science and Economics, Waseda University  
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Place
Tokyo  
Publisher
Name Keio Economic Society, Keio University  
Kana  
Romanization  
Date
Issued (from:yyyy) 2016  
Issued (to:yyyy)  
Created (yyyy-mm-dd)  
Updated (yyyy-mm-dd)  
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Source Title
Name Keio economic studies  
Name (Translated)  
Volume 52  
Issue  
Year 2016  
Month  
Start page 43  
End page 63  
ISSN
00229709  
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Abstract
We consider an economy in which the price mechanism in competitive market partially malfunctions ; namely some prices do not move in response to discrepancy between supply and demand. We formalize this case as a model where some prices are flexible as usual whereas others are fixed. On the assumption that every agent is a price taker, we show that even in this situation general equilibria do exist, but at the cost of two important properties ; namely, decisive relative prices and determinacy of equilibrium. On one hand, ineffectiveness of relative prices naturally induces use of money. We show, on the other hand, that money is of great use to solve the problem of indeterminacy of equilibrium. Specifically, money proves generically to yield the local determinacy of equilibrium under some condition, which also implies that money substantially affects a real economy.
 
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Keyword
Flex-fix prices  

relative and absolute prices  

indeterminacy of equilibrium  

money  

local uniqueness of equilibrium  
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Language
英語  
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Journal Article  
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Apr 13, 2017 14:54:42  
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Apr 13, 2017 14:54:42  
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/ Public / Faculty of Economics / Keio economic studies / 52 (2016)
 
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