simultaneous search or any heterogeneity in preferences, production costs, or search technologies. A distribution of money holdings … price distribution, in turn, makes buyers indifferent across a range of money balances, rationalizing the non …-degenerate distribution of money holdings. We completely characterize the distribution of posted prices and money holdings in any equilibrium …

the cost of inflation. Our model features a strategic complementarity between the buyers' ex ante choice of money balances … inefficient and welfare-ranked. Effects of inflation are highly nonlinear. When inflation is high, the buyer's money holdings bind …

One of the fundamental questions concerning inside money is whether its issuers should be regulated and how. This paper … evaluates the efficiency of one prevalent regulatory recommendation - a requirement that private issuers redeem inside money on … demand at par - in a random-matching model of money where the issuers of inside money are only imperfectly monitored. I find …

I present an environment for which both outside and inside money are essential as means of payment. The key model … feature is that there is imperfect monitoring of issuers of inside money. I use a random matching model of money where some … money that cannot be duplicated when only one type is used. Inside money provides liquidity that increases the frequency of …