that the indivisibility of money introduces in efficiencies into the formation of the terms of trade that are not present …Many search models of money rely on the double coincidence of real wants problem to generate a role for money and, for … the sake of tractability, assume money to be indivisible. In this article, we study the implications of these two …

We construct a continuous-time, New-Monetarist economy that displays an endogenous, non-degenerate distribution of … money holdings. Properties of equilibria are obtained analytically and equilibria are solved in closed form in a variety of … cases. Lump-sum transfers financed with money creation are welfare-enhancing when labor productivity is low whereas …

the one emphasized in the labor-market literature. Buyers cannot obtain the full return that an additional unit of money …This paper studies the validity of the Friedman rule in a search model with divisible money and divisible goods in … provides to the match, which makes the purchasing power of money inefficiently low in equilibrium. Consequently, even though …

setting. The experiments replicate an OTC market similar to the one used in monetary and financial economics (Shi, 1995 … gains from trades due to differences in technologies and endowments, and the terms of trade are determined through a simple …

setting. The experiments replicate an OTC market similar to the one used in monetary and financial economics (Shi, 1995 … gains from trades due to differences in technologies and endowments, and the terms of trade are determined through a simple …