Many economists have worried about changes in the demand for money, since money demand shocks can affect output … variability and have implications for monetary policy. This paper studies the theoretical implications of changes in money demand … for the nonneutrality of money in the limited participation (liquidity) model and the predetermined (sticky) price model …

This paper analyzes the effects of money injections on interest rates and exchange rates in a model in which agents … must pay a Baumol-Tobin style fixed cost to exchange bonds and money. Asset markets are endogenously segmented because this … fixed cost leads agents to trade bonds and money only infrequently. When the government injects money through an open market …

and some do not. When the fixed cost is zero, the model reduces to the standard one in which persistent money injections …, if markets are sufficiently segmented, then persistent money injections decrease interest rates, steepen or even twist …

operates and the rate of inflation it experiences. It also explores whether there are other properties of inflation, money, and … basis for our study is price, money, and output data for 15 countries that have operated under both types of monetary … we are able to establish several facts about the differences in inflation, money growth, and output growth between …

feature either memory or money. Memory is defined as knowledge on the part of an agent of the full histories of all agents … with whom he has had direct or indirect contact in the past. Money is defined as an object that does not enter preferences … environment with money is also feasible in the same environment with memory. Depending on the environment, the converse may or may …

Search-theoretic models of monetary exchange are based on explicit descriptions of the frictions that make money …

argue that the role of nominal bonds is to serve as record-keeping devices in intertemporal exchanges of money. I show that …

This essay articulates the principles and practices of New Monetarism, our label for a recent body of work on money …

body of recent work on money, banking, payments systems, asset markets, and related topics. A key principle in New … inflation, the relationship between money and capital accumulation, and the Phillips curve. We also extend the benchmark model …