ABSTRACT
This chapter extends the results of previous studies on temporary spot monetary equilibrium to the case of allowing sequential trading of commodities and money in both present and future. In other words, markets are open at every date. In a temporary equilibrium analysis, the agent's expectations of future environment link the subsequent markets together and it becomes very natural to introduce money and futures contracts in the sense that the exchange of present commodities or ready money for a promise to deliver commodities and money in the future is permitted in the model. The formal model of this type was studied by Green in, and it is restricted to the pure exchange non-monetary economy. The chapter shows that models of this type will provide a framework for the study of monetary theory. For every regular money economy with spot and futures transactions. There exists extended temporary monetary equilibrium for every money economy with spot and futures transactions.
