A second general equilibrium framework, due to Samuelson (1958), was
also available, and seemed better suited to the study of monetary questions.
That paper introduced a deceptively simple example of an economy in which
money with no direct use in either consumption or production nonetheless
plays an essential role in economic life. I used this model in my (1972) paper
in an attempt to show how monetary neutrality might be reconciled with the
appearance of a short-term stimulus from a monetary expansion. The model
is so simple and flexible that it can be used to illustrate many issues. I will
introduce a version of it here, along with enough notation to permit discussion
of some interesting details.