Dispersion of money balances among individuals is the basis for a range of policies but it has been abstracted from in … monetary theory for tractability reasons. In this paper, we fill in this gap by constructing a tractable search model of money … with a non-degenerate distribution of money holdings. We assume search to be directed in the sense that buyers know the …

Conventional wisdom is that inflation makes people spend money faster, trying to get rid of it like a “hot potato,” and ….e., we focus on the extensive rather than intensive margin - and prove buyers always spend their money faster when inflation …

different mechanisms, extends existing work on the microfoundations of money by allowing a general matching technology and …

into the search model some centralized markets as well as some decentralized markets where money is essential. This paper …, it also exhibits a dichotomy: one can determine the equilibrium path for the value of money independently of the paths of …

alternative mechanisms for price formation: bargaining, price taking, and posting. Both the value of money per transaction and …