In this paper, we present a simple random-matching model in which different seasons translate into different propensities to consume and produce. We find that the cyclical creation and destruction of money is beneficial for welfare under a wide variety of circumstances. Our model of seasons can...

We study the consequences of the introduction of widespread limited liability for corporations. In the traditional view, limited liability reduces transactions costs and enhances investment incentives for individuals and firms. But this view does not explain several important stylized facts of...

We modify the Diamond-Dybvig [3] model studied in Green and Lin [5] to incorporate a self-interested banker who has a private record-keeping technology. A public record-keeping device does not exist. We find that there is a trade-off between sophisticated contracts that possess relatively good...

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...