This paper considers an innite-horizon monetary economy with collateralized assets
in which only commodities can be used as collateral. A Central Bank lends money
to households by creating short- and long-term loans. Households can deposit or borrow
money on both short- and long-term maturity; they face a cash-in-advance constraint
when buying commodities of nancial assets.
Under various Gains to Trade Hypotheses, the existence of collateral monetary equilibrium
is ensured. I also provide some properties of equilibira, including the liquidity
trap.