Approximately monetary equilibrium in overlapping generations economy

This paper treats the consumption-loan model with fiat money. The question of existence of monetary equilibria in these economies is the topic of our study. We introduce a new concept of Approximately Monetary Equilibrium. We show that it is not true that whenever there is no Pareto-efficient non-monetary equilibrium then there is a monetary one. However, in this case, there exists an approximately monetary equilibrium.