Existence of a monetary steady state in a matching model: divisible money (Q2386133): Difference between revisions

This is a continuation of research published in the previous paper. A transition from indivisible money (the case considered in the above mentioned paper) to divisible money is not trivial. The author's approach is as follows. He embeds the nice steady states existing for indivisible money in the spaces of value of functions and measures for divisible money. Then he lets the unit of indivisible money go to zero and shows that a limit of the embedded steady states is a monetary steady state for divisible money. Then all what it needs is: (a) existence of the limit and (b) continuity of a mapping whose fixed point is a divisible-money steady state.