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 …

demonstrated that money is a measure of generalized power in exchange and a certification of generalized power in subsequent …

Today all countries have fiat money issued by a central bank. There is no obligation by a central bank to exchange its … money for gold or any other good. Central banks have the monopoly to issue central bank money and have the power to create … their money out of nothing. Creating such a monetary system is functional for a capitalist economy and must be regarded as a …

This paper investigates the possibility that wealth (holdings of money) serves as a signal of ability to produce high … would otherwise arise. -- Random matching ; Money holdings ; Signaling ; Distribution of wealth ; Welfare ; Divisible money …

equilibrium with degenerate money distribution. I solve for the entire class of exact solutions to the above non-linear second …

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

This paper adopts mechanism design to tackle the central issue in monetary theory, namely, the coexistence of money and … higher-return assets. I describe an economy with pairwise meetings, where fiat money and risk-free capital compete as means … of payment. Whenever fiat money has an essential role, any constrained-efficient allocation is such that capital commands …

environment with pairwise meetings, the money demand that is consistent with a constrained-efficient allocation takes the form of … moderate inflation is zero. This result is robust to different assumptions regarding the observability of money holdings, the …