In this paper we study the inefficiencies of the monetary equilibrium and optimal monetary policies in a search economy …. We show that the same frictions that give fiat money a positive value generate an inefficient quantity of goods in each … trade and an inefficient number of trades (or search decisions). The Friedman rule eliminates the first inefficiency and the …

This paper studies the role of money in environments where in each meeting there is a double coincidence of real wants …. Traders who meet at random finance their purchases through current production, the sale of divisible money or both. It is … shown that in the absence of valued money if traders have asymmetric tastes for each other’s good, they produce and exchange …

This paper studies the role of money in asymmetric double coincidence of real wants environments where in each meeting … current production, sale of divisible money, or both. It is shown that in the absence of valued money if traders have … asymmetric tastes for each other's good, they produce and exchange socially inefficient quantities. With valued money, however …

This paper studies the validity of the Friedman rule in a search model with divisible money and divisible goods where … one emphasized in the labour-market literature. Buyers cannot obtain the full return that an additional unit of money … provides to the match, which makes the purchasing power of money inefficiently low in equilibrium. Consequently, even though …

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 …

consumption decisions in search-theoretic models of money. Our framework potentially generates three types of inefficiencies: the …We use alternative assumptions about the divisibility of goods and money and the ability of agents to use lotteries on … money to investigate to what extent the indivisibility of money is the cause for the typically inefficient production and …

consumption decisions in search-theoretic models of money. Our framework potentially generates three types of inefficiencies: the …We use alternative assumptions about the divisibility of goods and money and the ability of agents to use lotteries on … money to investigate to what extent the indivisibility of money is the cause for the typically inefficient production and …

Many search models of money rely on the double coincidence of real wants problem to generate a role for money and, for … the sake of tractability, assume money to be indivisible. In this article, we study the implications of these two … assumptions for the formation of the terms of trades and the purchasing power of money. In the First part of the paper we show …

In search-theoretic models of monetary economies, equivalence between money and memory is referred to gift …?s model, it appears that money does not remedy an absence of double coïncidence of wants, a private information nor a lack of … memory ; when specialisation is endogenous, money is nothing but the condition for a specialisation of production and for the …

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 …