There are two general ways in which the role of fiat money has been introduced in the standard monetary search-theoretical model. The first is to bring in the model a fiat object with different intrinsic properties. The second is to introduce a centralized institution that favors the use of fiat...

This paper considers a monopolist's supply of outside paper money in a random-matching model with divisible money and divisible goods. When binding supply announcements are feasible, the revenue-maximizing policy is characterized by an initial period where the monopolist initiates a currency...

A model of fiat money is constructed in which spatial separation and the logistics of communication are made explicit as in search theory, but exchange is organized by profit-seeking business enterprises as in all market economies. Firms mitigate search costs by opening shops that are easily...

This article considers an infinitely repeated economy with divisible fiat money. The economy has many marketplaces that agents choose to visit. In each marketplace, agents are randomly matched to trade goods. There exist a variety of stationary equilibria. In some equilibrium, each good is...

The article starts with a brief description of Mises’ monetary theory, with emphasis on the Misesian differentiation of two kinds of credit: commodity and circulation credit, and with the description of the impact of circulation credit expansion on the business cycle. Further on it is...