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 …

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

analyze an economy where there is no transaction demand for money balances: Money is a mere unit of account. We determine a … transaction role for money. In the absence of menu costs, the Friedman rule is optimal. In the presence of menu costs, the optimal …

goal of targeting inflation rates. A central theme of all three works is the desirability of abstracting from money demand … 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 …

investment, a variable that is usually a key predictor of recessions and recoveries. …

targeting produces falling nominal and real interest rates, while a policy of fixing the rate of money growth can easily lead to …

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

What implications do 21st century monetary innovations bring for holdings of central bank money and standards of value …? Emerging technologies such as cybercash, e-cash, and smart cards can be expected to reduce demand for central bank money, but … the theoretical framework for monetary policy has not changed. The authors stress three points in this paper: 1) money …