Real indeterminacy of equilibria with real and nominal assets.

This paper investigates the real indeterminacy of equilibria in an incomplete market model in which there are two periods, with uncertainty in the second, and both real and nominal assets exist. As is well known, the equilibria of a model with real assets behave very differently from the equilibria of a model with nominal assets. Then, what happens if real and nominal assets coexist? In this paper it is demonstrated within a general framework that regardless of the presence of real assets there is generically still real indeterminacy of equilibria whose degree is the same as without the real assets. [ABSTRACT FROM AUTHOR]