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 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 …

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 …

and confirm these results, we extend the search theoretical model of Kiyotaki and Wright [1993] by introducing two types …

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 …