By introducing costly centralized exchange into a traditional search theoretic decentralized market, where money can mediate trade, we show private money can arise endogenously because it is profitable for the centralized intermediary to satisfy the demand for money that will naturally arise....

This paper shows how nonperiodic fluctuations can emerge in the standard fix price macroeconomic model when induced investment is strong enough. Specific functional forms are used to illustrate the phenomenon and to compute numerical evidence that nonperiodic fluctuations need not be rare.