Consider the following question:

"Given a simplified economy which produce and trade some products A,B,C etc... with N agents and a total money supply of M. What will be the price of A, B, C as measured in units of that money?"

It seems to me that this is one of the most fundamental questions in economics and yet I am struggling to find any papers that address it. I guess there may be some agent based models out there which address it but I don't know what keywords or phrases to use in a search. Any ideas?


1 Answer 1


What you are asking about is "General Equilibrium with Money", and there is literature on the matter.

To get you started, check out

Duffie, D. (1990). Money in general equilibrium theory. in Friedman and Hahn (eds), Handbook of monetary economics, vol. 1, 81-100.

The chapter starts with the sentence

This chapter provides conditions for the existence of general monetary equilibrium in a simple setting, and discusses the role of money in general equilibrium theory.


Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.