This paper investigates the role of fiat money in decentralized markets, where producers have private information about … the quality of the goods they supply. Money is divisible, terms of trade are determined endogenously, and agents can … finance their consumption with money or with real production. When the fraction of high quality producers in the economy is …

We present a simple, finite-state search model to understand how the cross-sectional distribution of money affects its … value. We first document a network effect: the value of a given unit of money is higher when its distribution is even …. This approach is designed to be especially pertinent in the context of private issuance of money, in particular …

centralized markets after one round of decentralized trade. Given quasi-linear preferences, this makes the distribution of money … these models by assuming two rounds of trade before agents can readjust their money holdings to study a range of new … distributional effects analytically. We show that unexpected, symmetric lump-sum money injections may increase short-run output and …

not created due to a hold-up problem. Monetary expansion increases buyers' money holdings, and then, dealers are willing …

information to the model of [Berentsen and Waller, 2011], a divide between an interest rate policy and a money stock policy …