implications of our model for monetary economics. When a central bank increases the money supply, it must inject the money … somewhere in the economy. We demonstrate that the agent closest to the location where money is injected is better off, and the …. Symmetrically, any decrease in the money supply redistributes purchasing power in the other direction. We also outline the testable …

We construct a tractable model of divisible money and equilibrium heterogeneity in money balances and prices. We do so … by considering randomized monetary trades in a standard search-theoretic model of money where agents can hold multiple … observed in numerically simulated economies with fully divisible money and price heterogeneity. …

This paper studies the role of money in environments where in each meeting there is a double coincidence of real wants …. Traders who meet at random finance their purchases through current production, the sale of divisible money or both. It is … shown that in the absence of valued money if traders have asymmetric tastes for each other’s good, they produce and exchange …

This paper studies the joint business cycle dynamics of in ation, money growth, nominal and real interest rates and the … velocity of money. I extend and estimate a standard cash and credit monetary model by adding idiosyncratic preference shocks to …

. We show that the same frictions that give fiat money a positive value generate an inefficient quantity of goods in each …

This paper studies the validity of the Friedman rule in a search model with divisible money and divisible goods where … one emphasized in the labour-market literature. Buyers cannot obtain the full return that an additional unit of money … provides to the match, which makes the purchasing power of money inefficiently low in equilibrium. Consequently, even though …

This paper investigates the role of fiat money in decentralized markets, where producers have private information about … the quality of the goods they supply. Money is divisible, terms of trade are determined endogenously, and agents can … finance their consumption with money or with real production. When the fraction of high quality producers in the economy is …

In many situations, some people hold large money balances but have no particular urgency to spend them while others are …