Conventional wisdom is that inflation makes people spend money faster, trying to get rid of it like a “hot potato,” and this is a channel through which inflation affects velocity and welfare. Monetary theory with endogenous search intensity seems ideal for studying this. However, in standard...

We motivate and provide an overview to New Monetarist Economics. We then briefly describe the individual contributions to the <italic>Macroeconomics Dynamics</italic> special issues on money, credit, and liquidity.