New equilibrium concept revolutionizes infinite horizon economies with incomplete markets!
The article discusses how economies with incomplete markets can reach a balance between debt and assets over time. The researchers introduce a new concept of equilibrium for these types of economies, which extends previous ideas used in different market scenarios. They prove that this new equilibrium exists when assets are short-lived and valued in various goods, and when assets are valued in a single commodity or currency. This new equilibrium concept aligns with other established equilibrium definitions.