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 …

This paper studies the validity of the Friedman rule in a search model with divisible money and divisible goods in … the one emphasized in the labor-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 …

We construct and analyze a tractable search model of money with a non-degenerate distribution of money holdings …. Analytical tractability comes from modeling decentralized exchange as directed search, which makes the monetary steady state … and provide conditions under which the steady-state distribution of buyers over money balances is non-degenerate. Moreover …

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 …

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 …

We construct and analyze a tractable search model of money with a non-degenerate distribution of money holdings …. Analytical tractability comes from modeling decentralized exchange as directed search, which makes the monetary steady state … and provide conditions under which the steady-state distribution of buyers over money balances is non-degenerate. Moreover …

This paper considers a monopolist’s supply of outside paper money in a random-matching model with divisible money and … money, which the issuer taxes thereafter with a constant gross growth rate of money. It is shown that this policy is time …-consistent if the trading history of the issuer is public information and if money demanders respond to the relevation of defection …

Why is money divisible? To explore this question we introduce a mismatch problem into search-theoretic models of … monetary exchange. We use alternative assumptions about the divisibility of goods and money and the ability of agents to use … lotteries on money. Our framework potentially generates three types of inefficiencies: the no-trade inefficiency where no trade …

natural rates of unemployment. We show a positive relationship between the probability of acceptation of money and the …