Models of monetary economies with explicit micro-foundations play a central role in macroeconomics. A common assumption is the quasi-linearity of individuals' preferences. Moreover, anonymity rules out credit and implies that individuals are constrained in their ability to save and borrow. These...

In Chapter 1 we construct a monetary economy with heterogeneity in discounting and consumption risk. Agents can insure against this risk with money and nominal government bonds, but all trades must be monetary. We demonstrate that a deflationary policy à la Friedman cannot sustain the...

This thesis includes three essays on monetary theory analyzing monetized trading arrangements in three separate environments: (1) transient economy, (2) economy with two competing imperfect record-keeping technologies, and (3) economy where agents are subject to productivity shocks. In Essay...