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Money and Competing Assets under Private Information

Rocheteau, Guillaume - 2008

I study random-matching economies where at money coexists with real assets, and no restrictions are imposed on payment … the usefulness of at money. The liquidity of the real asset, as measured by its transaction velocity, is shown to depend …

Persistent link: https://www.econbiz.de/10012723656

A Note on Monotone Comparative Statics for Monetary Directed Search Models

Choi, Michael - 2019

, regardless of the choice of matching function. Second, the seller-to-buyer ratio, output level and money demand increase as the …

Persistent link: https://www.econbiz.de/10012904476

Counterfeiting, Screening and Government Policy

Kang, Kee-Youn - 2018

We construct a search theoretic model of money in which counterfeit money can be produced at a cost, but agents can … screen for fake money also at a cost. Counterfeiting can occur in equilibrium when both costs and the inflation rate are … circulation of counterfeit money differs from the conventional mechanism that holds in the model when counterfeiting does not …

Persistent link: https://www.econbiz.de/10012936218

Dirty Money

Camera, Gabriele - 2014

An inter-governmental body is encouraging the replacement of currency with the objective of discouraging illegal economic activities. This policy is analyzed in a search-theoretic model where individuals choose legal or illegal production, settle trades via monetary or costly intermediated...

Persistent link: https://www.econbiz.de/10013039915

Money, Search and Costly Matchmaking

Camera, Gabriele - 2014

double-coincidence matches. Multiple equilibria exist with the extent of costly matching endogenously determined. Money and …

Persistent link: https://www.econbiz.de/10013039918

Exit Strategies for Monetary Policy

Berentsen, Aleksander - 2018

In response to the financial crisis of 2007/08, all major central banks decreased interest rates to historically low levels and created large excess reserves. Central bankers and academics currently discuss how to implement monetary policy, going forward. We find that paying interest on reserves...

Persistent link: https://www.econbiz.de/10012934628

A Model of Retail Banking and the Deposits Channel of Monetary Policy

Choi, Michael; Rocheteau, Guillaume - 2021

We develop a dynamic, search-theoretic model of bank deposit and loan markets where relationships are bilateral, the demand for liquid assets is microfounded, and consumers are privately informed about their liquidity needs. As the policy rate rises, the deposit spread widens, and aggregate...

Persistent link: https://www.econbiz.de/10013216021

Delay and Learning in Coordination

Chamley, Christophe; Zhou, Zhen - 2021

This paper studies a coordination game with incomplete information and the option to delay. The delay option enables the agents to observe a binary signal depending on whether the early actions (e.g., investment) surpasses a threshold. The anticipation of information incentivizes agents to wait...

Persistent link: https://www.econbiz.de/10013219112

Foundations of Market Power in Monetary Economies

Choi, Michael; Rocheteau, Guillaume - 2021

We study the foundations of firms' market power in a continuous-time model where agents are price-makers who interact explicitly with each other. Market power arises from the existence of rents, the size of which depends on consumers' outside options, and firms' ability to appropriate these...

Persistent link: https://www.econbiz.de/10013238448

A Monetary Approach to Asset Liquidity

Rocheteau, Guillaume - 2010

fiat money coexists with a real asset, and no restrictions are imposed on payment arrangements. The liquidity of the real …

Persistent link: https://www.econbiz.de/10013144528