I study random-matching economies where at money coexists with real assets, and no restrictions are imposed on payment … the usefulness of at money. The liquidity of the real asset, as measured by its transaction velocity, is shown to depend …

goal of targeting inflation rates. A central theme of all three works is the desirability of abstracting from money demand … development of monetary theory. In contrast, the third book is a collection of papers in an NBER volume on inflation targeting … in the analysis of monetary policy. In our review we focus the bulk of our discussion on the absence of money in these …

model with divisible money, we show how this choice matters for important results such as the ability of the optimal … evaluate quantitatively the welfare cost of inflation under the different bargaining solutions, and we extend the model to …

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

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 construct a model in which capital competes with fiat money as a medium of exchange, and establish conditions on … fundamentals under which fiat money can be both valued and socially beneficial. When the socially efficient stock of capital is too … rule, fiat money provides just enough liquidity so that agents choose to accumulate the same capital stock a social planner …