If money and financial assets are to be integrated into general equilibrium theory, it is apparent that the classical Arrow-Debreu framework must be modified. As long as all trading takes place essentially at some initial point in time, with each individual subject only to a present value budget constraint, there is no place in the system for money, either as a medium of exchange or as a store of value, even if uncertainty about future states of the world is introduced as in Debreu [2], for example. It is natural then to consider an economy with sequential trading, and the appropriate Walrasian equilibrium concept becomes the Hicksian temporary equilibrium. This framework underlies the analysis of Patinkin [11] and has been formally developed by several authors, including Grandmont [4], Green [6], Sondermann [12] and Stigum [13, 14]. [1] has pointed out that the classical budget constraint used in neo-Walrasian monetary theory, with money appearing symmetrically with consumption goods, is an inadequate representation of the trading opportunities available to an individual in a monetary economy. Being analytically indistinguishable from other commodities, money plays no essential role in the exchange process. proposed a dichotomized budget constraint to characterize money expenditure and money income; the expenditure constraint requires that the cost of an individual's purchases in a given period does not exceed his initial cash balance. Grandmont and Younes [5] introduced into the Walrasian framework a modification of Clower's expenditure constraint, allowing an individual trader to have access to a fraction of the total proceeds from his sales in the current period. However, their proof of existence of a temporary monetary equilibrium (hereafter TME) does not cover the case where the fraction is zero (Clower's specification). They also employ the very restrictive assumption of tight expectations (see below, Section 3), an assumption which has been standard in previous proofs of existence of a TME. (See, for example, Grandmont [4] and Sondermann [12].) It rules out expectations with unitary elasticity and so the case where current prices are expected to hold in the future (as in Patinkin [11]). In this paper it is shown that, if the actual Clower constraint is used to introduce into the Walrasian model the requirement that money be used as the medium of exchange, it is possible to demonstrate the existence of a TME with a much weaker restriction on expectations. More precisely, it is shown that the class of price expectations consistent with the existence of a TME includes expectations with elasticity up to and including unity. If the expenditure constraint is added to the basic Patinkin model we can establish the existence of a short-run equilibrium in that model, subject to a mild condition on initial endowments expressing the desirability of an intertemporal transfer of wealth. In economic terms, the problem is to establish the existence of an equilibrium in which