This paper examines the competition between money and credit in a search model with divisible commodities. It is shown … that flat money can be valuable even though it yields a lower rate of return than the coexisting credit. The competition … between money and credit increases efficiency. The monetary equilibrium with credit Pareto dominates the monetary equilibrium …

The history of money has always been intertwined with the history of banking. Nevertheless, very few papers have … literatures. I present three theories of money and banking, each generating results that are drastically different from those of … the traditional banking models without microfoundations for money. Chapter 1 addresses the problem of monitoring the …

We construct and analyze a tractable search model of money with a non-degenerate distribution of money holdings … and provide conditions under which the steady-state distribution of buyers over money balances is non-degenerate. Moreover …

nominal bonds as a means of payments for goods. To do so, I integrate a microfounded model of money with the framework of … households' ability to trade unmatured bonds for money after observing the taste (or endowment) shocks. …

In this lecture, I explain what the microfoundations of money are about and why they are necessary for monetary … economics. Then, I review recent developments of a particular microfoundation of money, commonly known as the search theory of … money. Finally, I outline some unresolved issues. …

countries. Nominal and real exchange rates can move together in the steady state in response to money growth shocks. …

. We show that the same frictions that give fiat money a positive value generate an inefficient quantity of goods in each …