In this paper we develop a two-country global monetary economy where a monetary equilibrium exists because of fundamentaldecentralized trade frictions ? a Lagos-Wright search and matching friction. In the decentralized markets (DM), the terms of trade can be determined either by bargaining or by...

We explore how the informational frictions underlying monetary exchange affect international exchange rate dynamics. Using a two-country, two-sector model, we show that information frictions imply a particular restriction on domestic price dynamics and hence on international nominal and real...

We present a theoretical framework where agents take into account the fact that their dietary choice affects their health status and hence their life expectancy. The literature that explains the relationship between income heterogeneity, health status and life expectancy has focused on the...

In this paper we develop a two-country global monetary economy where a monetary equilibrium exists because of fundamentaldecentralized trade frictions ? a Lagos-Wright search and matching friction. In the decentralized markets (DM), the terms of trade can be determined either by bargaining or by...