Li, Yiting; Rocheteau, Guillaume - In: Macroeconomic Dynamics 15 (2011) S1, pp. 10-41
We study counterfeiting of currency in a search-theoretic model of monetary exchange. In contrast to Nosal and Wallace [<italic>Journal of Monetary Economics</italic> 54, 229–246 (2007)], we establish that counterfeiting does not pose a threat to the existence of a monetary equilibrium; i.e., a monetary...