We construct a search-theoretic model where fiat money coexists with real assets, and all assets can be used as a media … facts: (i) fiat money can be valued despite being dominated in its rate of return; (ii) real assets with identical dividend …

Modern payment instruments can be complex. Yet, many of these can be interpreted as a form of money or credit, which … credit arrangements? Why is fiat money valued? Why do money and credit coexist? Our simple model can address these basic and …

In Money, Payments, and Liquidity, Ed Nosal and Guillaume Rocheteau provide a comprehensive investigation into the … economics of money and payments by explicitly modeling trading frictions between agents. Adopting the search-theoretic approach … the frictions in the economy that make money and liquid assets play a useful role in trade. They discuss the implications …

order to generate a role for money and intermediation. We ask whether there is any reason to expect the emergence of a … banking sector (i.e., institutions that combine the business of money creation with the business of intermediation). In our … model the unique equilibrium is characterized, in part, by the existence of an agent that: (1) creates money (a debt …

, and economies in which money and credit coexist. We also study alternative assets, such as foreign exchange, capital … (equity), and government liabilities, which can be used as payment instruments in conjunction with money. We introduce banks … process of the settlement of debt for money is modeled and the potential social costs of settlement are characterized. Finally …

The 2007 Summer Workshop on Money, Banking, Payments and Finance met at the Federal Reserve Bank of Cleveland this …

Gresham’s law, which says that bad money tends to drive good money out of circulation, may account for many nations …’ episodes of money troubles, as far back as ancient Athens. This Commentary discusses the two main explanations for Gresham …