. 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 …

held, and of the amount held abroad. Most macroeconomic models that address the role of outside money as a determinant of …

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 …

an example for which a time-consistent policy cannot be implemented through the control of nominal money balances. In … particular, they find that equilibria are not unique under a money stock regime and they attribute the non-uniqueness to …

This paper investigates the impact of unanticipated changes in the money stock on the money, stock and foreign exchange … rise and stock prices fall in response to an unanticipated rise in the money stock. These results are broadly interpreted … compare the consistency of the response across markets to unanticipated changes in the money stock. The results suggest that …