Geanakoplos, John; Karatzas, Ioannis; Shubik, Martin; … - In: Journal of Mathematical Economics 52 (2014) C, pp. 1-11
We prove the existence of stationary monetary equilibrium with inflation in a “Bewley” model with constant aggregate real variables but with idiosyncratic shocks to the endowments of a continuum of individual agents, when a central bank stands ready to borrow or lend fiat money at a fixed...