"We analyze optimal monetary policy in an endogenous sticky price model. Similar models with exogenous sticky prices … explain the variation across time and countries of inflation patterns. In our model's equilibrium, profit differentials … between sticky price firms and flexible price firms are small. Also, the gain from revising prices for sticky prices firms is …

equilibrium model where search frictions motivate the transactions role of money. The use of a multiple matching technique, where …This paper investigates the relationship between money growth, inflation, and productive activity in a general … search frictions are captured by limited consumption variety, allows us to study price determination in a search …

publicly-issued (a.k.a. outside) circulating liabilities as part of an equilibrium. Our analysis emphasizes spatial separation … inside and outside money does and does not allow the economy to achieve a first-best allocation of resources. We also study … for the determinacy of equilibrium, and for endogenously arising volatility. …

publicly-issued (a.k.a. outside) circulating liabilities as part of an equilibrium. Our analysis emphasizes spatial separation … inside and outside money does and does not allow the economy to achieve a first-best allocation of resources. We also study … for the determinacy of equilibrium, and for endogenously arising volatility. …

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. …

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 …

held, and of the amount held abroad. Most macroeconomic models that address the role of outside money as a determinant of … the economy's aggregate price level are closed economy models, suggesting a need to accurately measure the domestic …