ABSTRACT
General equilibrium is timeless, and without outside money, the price system is homogeneous of order zero. Some finite-horizon strategic-market game models are considered, with an initial issue of fiat money held as an asset. This chapter devotes to an essentially nontechnical presentation of the key elements of the approach together with some of the key results. It indicates the basic shift in paradigm away from equilibrium toward the study of process, learning, and evolution which is transforming economic analysis. The chapter deals with exchange economies with completely stationary or cyclical inputs. It suggests that the basic points made here hold for growth models with some adjustments concerning the boundedness conditions on the money supply being related to the size of growth. The money market alone cannot adjust the money supply seamlessly to the variations needed for the appropriate relative prices.
