We study general equilibrium with nonconvexities. In these economies there exist sunspot equilibria without the usual assumptions needed in convex economies, and they have good welfare properties. Moreover, in these equilibria, agents act as if they have quasi-linear utility. Hence wealth...

We study economies with an essential role for liquid assets in transactions. The model can generate multiple stationary equilibria, across which asset prices, market participation, capitalization, output and welfare are positively related. It can also generate a variety of nonstationary...

Intro -- Contents -- Acknowledgments -- Introduction -- Models Where Money Is Useless -- Models Where Money Is Essential -- Beyond Monetary Exchange: Credit and Liquidity -- Tour of the Book -- Chapter 1. The Basic Environment -- 1.1 Benchmark Model -- 1.2 Variants of the Benchmark Model -- 1.3...