Asset Markets and Equilibrium Processes
研究资产市场不完全性如何导致产出和价格的序列依赖，并解释货币经济中实际与名义变量的共同运动。
The failure of the asset market to be complete causes serial dependence in output and prices, which is suboptimal. We consider an economy with white noise shocks. When the asset market is complete, an optimal, competitive allocation inherits this strong stationarity. When the asset market is only sequentially complete, prices and output necessarily display serial dependence at equilibrium. The further incompleteness of a monetary economy explains co-movements in real and nominal variables.