Munich Personal RePEc Archive

Fisherian Futures Market

Kim, Minseong (2015): Fisherian Futures Market.

[img]
Preview
PDF
MPRA_paper_68387.pdf

Download (195kB) | Preview

Abstract

The very fact that utility maximization in real business cycle and New Keynesian models is intertemporal suggests the possibility of a Fisherian intertemporal futures market, which is not state-contingent. Ex-ante speaking, the addition of a futures market does not result in any difference, but the addition does make difference ex-post. Furthermore, New Keynesian models rely on nominal effects, and what would introduction of a Fisherian futures market mean for these models? This paper answers this question by presenting a model that features Fisherian intertemporal futures markets.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.