money coexists with a real asset, and no restrictions are imposed on payment arrangements. The liquidity of the real asset …

We revisit classic questions concerning the effects of money on investment in a new framework: a two-sector model where …

friction in order to generate a role for money and intermediation. They ask whether there is any reason to expect the emergence … of a banking sector (i.e., institutions that combine the business of money creation with the business of intermediation …). In their model, the unique equilibrium is characterized partly by the existence of an agent that: (1) creates money (a …

card- and software-based electronic money may be a partial alternative to current forms of payments. This paper examines … some of the factors that will influence the adoption of electronic money, primarily in the United States. …

This paper investigates the welfare effects of inflation in economies with search frictions and menu costs. We first … analyze an economy where there is no transaction demand for money balances: Money is a mere unit of account. We determine a … condition under which price stability is optimal and a condition under which positive inflation is desirable. We relate these …

We describe counterfeiting activity as the issuance of private money, one which is difficult to monitor. Our approach …, which amends the basic random-matching model of money in mechanism design, allows a tractable welfare analysis of currency …