Green, Edward J.; Zhou, Ruilin - In: International Economic Review 46 (2005) 2, pp. 351-371
We investigate the efficiency property of a monetary economy with spot trade. We prove a conjecture that is essentially due to Bewley ("Models of Monetary Economics" (1980); "Econometrica" 51 (1983), 1485-504). The gist is that monetary spot trading is nearly efficient ex ante in an environment...