(1) Faculty of Economics, University of Tokyo, Bunkyo-ku, Tokyo 113-0033, Japan;(2) Faculty of Economics, Kansai University, 3-3-35 Yamate-cho, Suita Osaka, 564-8680, Japan
Abstract:
This paper develops a new technique for proving the existence and indeterminacy of monetary equilibria in money search models
with divisible money. Our technique is substantially simpler than standard constructive proofs in the literature.
This paper is based on the second half of Kamiya and Shimizu (2002). We are very grateful to the associate editor and an anonymous
referee of this journal for their very detailed suggestions and comments. This research is financially supported by Grant-in-Aid
for Scientific Research from JSPS and MEXT. The second author also acknowledges the financial support by Zengin Foundation
for studies on Economics and Finance.