In a simple search model of money, we study a special kind of memory which gives rise to an arrangement resembling a …

novelty of the paper is to show how the diffusion of a money injection by the central bank depends not only on the interaction … of agents in exchanging money for goods, but on the arrangements for clearing and settlement of credit instruments. The …

constitutes progress on the classic problem of integrating money and general equilibrium theory. We also use the model to discuss …

, as well as the distribution of money. As inflation decreases, agents are induced to participate less frequently in the … centralized liquidity market, leading to a lower velocity of money, a smaller liquidity market, fewer resources spent on market … participation and higher heterogeneity in money holdings across agents. The welfare costs of inflation implied are different from …

-theoretic framework. We allow money-holders to choose the intensities with which they search for trading partners, so the frequency of …

money holdings. We have two basic objectives. First, we want to understand under what types of heterogeneity a simple …

nominal bonds as a means of payments for goods. To do so, I integrate a microfounded model of money with the framework of … to trade unmatured bonds for money after observing the taste (or endowment) shocks. Thus, the role cannot be mimicked or …