We define continuous-time dynamics for exchange economies with fiat money. Traders have locally rational expectations … trades, can be linked to gains-to-trade, households' expectations, and the quantity of circulating money. … game involving a double-auction with limit-price orders. Money has a positive value except on optimal rest-points where it …

money has been (endogenously) delivered which did not lead to a proportionate increase of real wealth, thereby creating an … artificial purchasing power into the economic system. According to Keynes and Post Keynesians 'true inflation' develops when the … get to limit the artificial increase of assets prices, the circulating bad money may trigger a generalized inflationary …

rational expectations on future prices, interest rates and exchange rates. Although currencies turn out to be non-neutral, if … Theory of Money holds provided the economy is not trapped in a liquidity hole. The traditional theory of comparative …

whether the real money gap contains more information about future inflation in Europe, than an indicator based on the growth … central banks' monetary policy must be credible if the authorities want to curb inflation. A second view is that central banks … set their monetary policy by using all the information relevant for inflation and output projections. In Europe, a …

expectations in the sense that any other expectations justifying his choices imply a smaller likelihood for the history he observes … with limited memory, then there are rationally formed expectations equilibria exhibiting an excess volatility that no … rational expectations equilibrium can match. Given that the limited records or finite memory case may arguably be the relevant …

rules and institutions they face. This allows to proxy the bailout expectations in both countries and their role in … determining soft budget spending behaviors. A larger impact of expectations is taken as evidence of greater discretion in fiscal … soft budget constraints and bailing out expectations are a quantitatively important component of local government spending …

This paper is dedicated to the empirical exploration of the welfare effect of expectations and progress per se. Using …