tends to understate the value of money as an indicator for monetary policy. …

monetary theory, such as the welfare cost of inflation. It is shown that when money is a vital form of liquidity to meet … money, thus hindering consumption smoothing at the household level. Such an inflation-induced increase in consumption risk … moderate inflation and social unrest in developing countries where money is the major form of household financial wealth. …

This paper investigates the relationship between money growth, inflation, and productive activity in a general … frictions play in determining the extent to which inflation distorts relative prices, and the effect of money growth on firm … equilibrium model where search frictions motivate the transactions role of money. The use of a multiple matching technique, where …

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 … dynamic contracts to induce truthful revelation of preferences. Inflation affects agents' incentive constraints and so …