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 …

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 …

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 …

of the "inflation tax" risk associated with each. When one currency has the right amount of risk, equilibria exist in …

constitutes progress on the classic problem of integrating money and general equilibrium theory. We also use the model to discuss … another classic issue: the relation between inflation and unemployment. …

show how these features interact to influence the price level (i.e., the value of money) and price dispersion. First, price …