. Specifically, they characterize the optimal return on money in the presence of credit arrangements. There is a dual role for credit …: It allows buyers to trade without fiat money and also permits them to borrow against future income. However, not all … traders have access to credit. As a result, there is a social role for fiat money because it allows agents to self …

Lagos and Wright (2005) demonstrate how the essential properties of a money-search model are preserved in an … markets under limited commitment and private information. The analysis demonstrates clearly how insurance, credit, and money … the Friedman rule. In particular, I find that the same frictions that render money essential may at the same time operate …

substantially changes the dynamics in the model, allowing agents to significantly smooth consumption and reduce the movements in …

Gavin and Kydland (1999) calculated the cyclical properties of money and prices for the periods before and after the … inflation, the lag from money growth to inflation, and lag from money growth to nominal GDP growth. Generally, the monetary …-correlations between money growth and inflation. …

Forecasters, the authors study how changes in expectations, and their interaction with monetary policy, contribute to fluctuations … driver of economic fluctuations: a perception that good times are ahead typically leads to a significant rise in current …