Many applications of search theory in monetary economics use the Shi-Trejos-Wright model, hereafter STW, while …

have to search for a suitable counterparty, and once they meet, both parties negotiate the size of the loan and the …

Regulation Q, can explain the apparent instability of money demand during the same period. We evaluate the effects of the …

Using an existing random matching model of money, I show that a once-for-all change in the quantity of money has short …) the quantity of money is random and (ii) people learn about what happened to it only with a lag. The change in the … quantity of money comes about through a random process of discovery that does not permit anyone to deduce the aggregate amount …

A distinction is drawn between outside money - money that is either of a fiat nature or backed by some asset that is … not in zero net supply within the private sector - and inside money, which is an asset backed by any form of private …

This paper analyzes the effects of money injections on interest rates and exchange rates in a model in which agents … must pay a Baumol-Tobin style fixed cost to exchange bonds and money. Asset markets are endogenously segmented because this … fixed cost leads agents to trade bonds and money only infrequently. When the government injects money through an open market …