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In this paper we show that efficient allocations of infinite horizon economies with wary agents can be implemented sequentially with a non-vanishing fiat money supply and a suitable fiscal policy. The hedging role of money no longer disappears over time when consumers are wary about worse lifetime outcomes, including arbitrarily far away dates. The efficient fiscal policy puts a higher burden on money holdings plans that speculate on the future deflation.

Fiat Money; Fiscal Policy; Friedman's Rule; General Equilibrium