We apply a noisy signal approach (Morris and Shin, 1998, 2001) to the search model of a barter economy (Diamond, 1982), whose equilibria is equilibrium with and without production. Even under the existence of noisy signals, it is difficult to eliminate multiple equilibria in general because, to...

Although the Bank of Japan has recently (in 2003) conducted an expansionary monetary policy that targets the current accounts balance, additional monetary policies aimed at overcoming the deflationary situation may be necessary. No monetary vehicle to stimulate the economy under the "zero...

Japan has experienced prolonged economic stagnation throughout the 1990s and beyond. The government's monetary policies do not to seem to have been effective in eradicating deflation and increasing the money supply. A decrease in the money multiplier is said to be one reason for this. This paper...