This paper shows that price rigidity evolves in an economy populated by imperfectly rational agents who experiment with … the level of aggregate demand, as well as on their own price and their "neighbor"'s price. The latter assumption captures … rule that firms can easily adopt, the economy does not converge to the REE for highly autocorrelated aggregate demand …

not created due to a hold-up problem. Monetary expansion increases buyers' money holdings, and then, dealers are willing …

some agents are holding idle balances while others are cash constrained. This inefficiency creates a role for financial … intermediaries, such as banks, who accept nominal deposits and make nominal loans. We show that in general financial intermediation …

The present work offers a review on two divergent schools of thought regarding the subject of money and highlights why … understanding it is important to grasp the workings and nature of the concept of money. We adopt a spontaneous order perspective on … social institutions, considering money as one. Such framework allows for the construction of axioms from which we formulate …

of distortions. The literature, however, largely ignores the fact that most transfers are given in the form of money and … not in real (consumption) terms. Money holdings reflect postponed consumption and requires that a time dimension enters … the analysis. This aspect is ignored in the literature. We focus on money transfers in an otherwise standard set-up of a …