to relax a liquidity constraint. The dual nature of equity in the search-and-matching market entails a strategic … complementary in search operating through buyers' liquidity constraint, and it gives rise to endogenous booms and busts. The economy …

This paper offers a monetary theory of asset liquidity – one that emphasizes the role of assets in payment arrangements … – and it explores the implications of the theory for the relationship between assets' intrinsic characteristics and … liquidity, and the effects of monetary policy on asset prices and welfare. The environment is a random-matching economy where …

set of assets can be partitioned into three liquidity tiers, which differ in their resalability, their prices, their … a pecuniary externality, which leads to the result that some policies commonly thought to improve liquidity can be … welfare reducing. (Note: A previous version of this paper was circulated under the title “Liquidity Constraints.”) …

demand for liquid assets is microfounded, and consumers are privately informed about their liquidity needs. As the policy …

This paper develops a theory of endogenously (non-)Ricardian beliefs. That is, whether Ricardian Equivalence holds in ….) multiple equilibria exist where the economy can coordinate on Ricardian or non-Ricardian equilibria. The theory suggests a …

participants are liquidity-constrained, prices become less informative. This creates an adverse selection problem, decreasing the …

I extend and discuss the model of asset liquidity by Lester, Postlewaite, and Wright (2007, 2008). I consider a model … lower fraction of their asset holdings in matches where sellers are uninformed. Both the asset's price and its liquidity (as …