COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
AT YALE UNIVERSITY

Box 208281
New Haven, CT 06520-8281

COWLES FOUNDATION DISCUSSION PAPER NO. 1427

Real Determinacy with Nominal Assets

Pradeep Dubey and John Geanakoplos

June 2003

We build a finite horizon model with inside and outside money, in which interest rates, price levels and commodity allocations are determinate, even though asset markets are incomplete and asset deliveries are purely nominal.

Keywords: Central bank, Inside money, Outside money, Incomplete assets, Monetary equilibrium, Real determinacy

JEL Classification: D50, E40, E50, E58