We propose a standard search and bargaining model with divisible money, in which only the random matching market opens … tractable equilibrium, called a pay‐all equilibrium , and prove its existence. Each buyer pays all the money holding as a corner … power parameter affects the distribution of the money holdings and possibly induces economic inefficiency. We propose a …

I highlight the importance of the distributional aspects of money's divisibility by comparing a search-theoretic model … with random transfers of indivisible money balances, to one with deterministic transfers of partially divisible balances …. Randomization allows price flexibility, as if money were fully divisible. Partial divisibility does not, but allows money …

In this paper, a variant of Kiyotaki and Wright model of emergence of money is investigated. In the model, each good … but one is not durable. With certain condition, non durable good can be money as a medium of exchange. But equilibrium … non durable good as money by reinforcement learning which does use no information of the distribution of goods. It is …

unemployment is higher. We show that these correlations arise in a standard monetary search model with two shocks - productivity …

simultaneous search or any heterogeneity in preferences, production costs, or search technologies. A distribution of money holdings … price distribution, in turn, makes buyers indifferent across a range of money balances, rationalizing the non …-degenerate distribution of money holdings. We completely characterize the distribution of posted prices and money holdings in any equilibrium …

reunification. A policy that separates learning from control may induce a persistent upward bias in money growth and inflation, just …

variety, allows us to study price determination in a search-theoretic environment with divisible money and goods. In our basic …This paper investigates the relationship between money growth, inflation, and productive activity in a general … equilibrium model of search. The use of a multiple-matching technique, where trade frictions are captured by limited consumption …

In this paper we study the inefficiencies of the monetary equilibrium and optimal monetary policies in a search economy …. We show that the same frictions that give fiat money a positive value generate an inefficient quantity of goods in each … trade and an inefficient number of trades (or search decisions). The Friedman rule eliminates the first inefficiency and the …