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 … low to provide the liquidity agents need, they overaccumulate productive assets to use as media of exchange. When this is …

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 …

which the safe currency trades for multiple units of the risky one (pure currency exchange). As a result, the steady state … has a distribution of nominal exchange rates. The mean and variance of this distribution typically change in predictable …

they have quasi-linear utility. Hence wealth effects vanish. We use this to construct a new model of monetary exchange. As … constitutes progress on the classic problem of integrating money and general equilibrium theory. We also use the model to discuss …

We study models that combine search, monetary exchange, price posting by sellers, and buyers with preferences that … show how these features interact to influence the price level (i.e., the value of money) and price dispersion. First, price …

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 …

Search models of monetary exchange have typically relied on Nash (1950) bargaining or strategic games that yield an … model with divisible money, we show how this choice matters for important results such as the ability of the optimal …