We study the effects of money (anticipated inflation) on capital formation. Previous papers on this topic adopt reduced …-form approaches, putting money in the utility function or imposing cash in advance, but use otherwise frictionless models. We follow a … literature that is more explicit about the frictions making money essential. This introduces several new elements, including a …

, either by themselves, or alongside a stock of outside money. In each case we provide results on the existence and …

This paper investigates the relationship between money growth, inflation, and productive activity in a general … equilibrium model where search frictions motivate the transactions role of money. The use of a multiple matching technique, where …-theoretic environment with divisible money and goods. We find that in such a setting, a positive feedback between work and shopping effort …

inside and outside money does and does not allow the economy to achieve a first-best allocation of resources. We also study …

inside and outside money does and does not allow the economy to achieve a first-best allocation of resources. We also study …

frictions giving rise to money as a medium of exchange are explicitly modeled. The framework is a three period OLG model where … production efficiency in the search market. In the absence of record-keeping, the government uses flat money as a substitute for … distortionary taxation of money may be needed as part of the optimal policy even if lump-sum taxes are available. …

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