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

<p>To get you started, check out   </p>

<p><a href="https://pdfs.semanticscholar.org/21be/5b0b2a688a3f6ecacb016c987f1c08cdc0eb.pdf" rel="nofollow noreferrer"><strong>Duffie, D. (1990). Money in general equilibrium theory. in Friedman and Hahn (eds), <em>Handbook of monetary economics</em>, vol. 1, 81-100.</strong></a></p>

<p>The chapter starts with the sentence</p>

<blockquote>
  <p><em>This chapter provides conditions for the existence of general <strong>monetary</strong> equilibrium in a simple setting, and discusses the role of
  money in general equilibrium theory.</em></p>
</blockquote>

CC BY-SA 4.0
2019-04-19T13:18:07.937Z
2019-04-19T18:29:35.687Z
2019-04-19T18:29:35.687Z
Alecos Papadopoulos
<p>Consider the following question:</p>

<p>"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?"</p>

<p>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 <a href="https://en.wikipedia.org/wiki/Agent-based_computational_economics" rel="nofollow noreferrer">agent based models</a> out there which address it but I don't know what keywords or phrases to use in a search. Any ideas?</p>

<macroeconomics><money-supply>
The value of money in a model economy. Has this been addressed?
Mick
# The value of money in a model economy. Has this been addressed?

(Asked by: username_0 on 2019-04-19)

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](https://en.wikipedia.org/wiki/Agent-based_computational_economics) out there which address it but I don't know what keywords or phrases to use in a search. Any ideas?

**Tags:** macroeconomics, money-supply


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## 1 answers

### Answer by username_1 on 2019-04-19. Score: 3 | Accepted answer

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.**](https://pdfs.semanticscholar.org/21be/5b0b2a688a3f6ecacb016c987f1c08cdc0eb.pdf)

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.*


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