Menzio, Guido; Shi, Shouyong; Sun, Hongfei - Department of Economics, University of Pennsylvania - 2011
monetary theory for tractability reasons. In this paper, we fill in this gap by constructing a tractable search model of money … with a non-degenerate distribution of money holdings. We assume search to be directed in the sense that buyers know the …Dispersion of money balances among individuals is the basis for a range of policies but it has been abstracted from in …