Putting money into the utility and production functions is difficult to reconcile with the Walrasian general equilibrium

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“Putting money into the utility and production functions is difficult to reconcile with the Walrasian general equilibrium model.” “Putting money in the utility and production functions does provide a way of theorizing about the benefits from the medium of payments role that money plays in the real-world economy with heterogeneous goods, specialization in production and trade, and absence of the double coincidence of wants.”

Discuss these statements.

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Monetary Economics

ISBN: 9780415772099

2nd Edition

Authors: Jagdish Handa

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