TITLE:
A Study on Lucas’ “Expectations and the Neutrality of Money’’
AUTHORS:
Masayuki Otaki
KEYWORDS:
Neutrality of Money; Functional Equation; Contraction Mapping; A Sufficient Condition for the Unique Equilibrium Price Function
JOURNAL NAME:
Theoretical Economics Letters,
Vol.2 No.5,
December
21,
2012
ABSTRACT: This short article shows that the functional equation on the equilibrium price function is more complicated than that considered by Lucas [1], and that modification is required to complete the proof. Furthermore, we shall provide a sufficient condition that guarantees the uniqueness of the equilibrium price function.