ability of money-based forecasts relative to a simple random walk benchmark model was high at medium-term forecasting horizons …

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 …

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 … preferences and the velocity of money under heterogeneous preference shocks. …

frictions to incorporate the interrelationship of money, search, and endogenous price dispersion. Inflation aspects welfare …

We construct a search-theoretic model where fiat money coexists with real assets, and all assets can be used as a media … of exchange. The terms of trade in bilateral matches are determined by a pairwise Pareto-efficient pricing mechanism. We … facts: (i) fiat money can be valued despite being dominated in its rate of return; (ii) real assets with identical dividend …

Conventional wisdom is that inflation makes people spend money faster, trying to get rid of it like a “hot potato,” and … exchange and hence reduces search effort. We replace search intensity with a free entry (participation) decision for buyers - i ….e., we focus on the extensive rather than intensive margin - and prove buyers always spend their money faster when inflation …