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 …

standard urn-ball process. We consider three physical environments: indivisible goods and money, divisible goods and … indivisible money, and divisible goods and money. We compare the results with Kiyotaki and Wright (1993), Trejos and Wright (1995 … particular, sur- plus maximization can be achieved in this setting, in equilibrium, with a positive money supply. Moreover, with …

Many individuals simultaneously have significant credit card debt and money in the bank. The so-called credit card debt … coexistence of debt and money in the bank is no puzzle …

A model is developed that employs recent developments in the literature on search models of money to capture the … distributional effects of monetary policy in a tractable way. Deterministic and stochastic versions of the model are studied. Money … is not neutral, and these non-neutralities persist, whether or not the change in the money supply is anticipated or …

, agents have excess demand for or supply of money balances. Banks arise to reallocate excess cash by taking deposits from …

Models where money arises due to a transactions motive imply that an increase in aggregate activity will raise the … demand for money. Models where money arises due to money being the most preferred form of precautionary savings imply that a … decrease in individual uncertainty will lower the demand for money. Therefore, the effect of an aggregate shock on the demand …

, 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 …