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 …), and Lagos and Wright (2005) respectively. We Â…nd that the multilateral matching setting generates very simple and …

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 …

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 …

implement this in the Lagos and Wright (2005) matching model of money demand, assuming that preference shocks follow a two … use of credit reduces the money holdup in the matching market and thus leads to Pareto improvements …-state Markov chain. We derive conditions under which cash and credit in the anonymous matching market coexist. For fixed but suffi …