nice duality theory as in frictionless models. …

by central banks to achieve price level stability. But frictionless models are Walrasian general equilibrium models that … theory and policy that are precluded by construction in frictionless models. In some states of the model money is converted …

No. As well-specified Walrasian general equilibrium systems, frictionless models are isomorphic with the Arrow … friction. Furthermore, as frictionless models have no use for money or nominal values it makes no sense to use them to …