This paper analyzes a two-country model of currency, banks and endogenous default to study whether impediments to credit market integration across jurisdictions impact the desirability of a currency union. We show that when those impediments induce a higher cost for banks to manage cross-border...

This paper analyzes a two-country model of money and banks to examine the conditions under which the creation of a monetary union between two countries is optimal. Is is shown that if agents resort to banks to adjust their monetary holdings through borrowing and if nobody can force them to repay...

We present a model in which intermediaries that compete with a search market emerge. Agents are heterogenous vis à vis a production cost. They are allowed to choose both their economic activity, becoming a producer or a middleman, and their transaction strategies. Entering the intermediation...

The search-theoretic approach to monetary economics, initiated by the seminal papers of Kiyotaki and Wright [1989, 1993], offers a framework for the rationale of money, defined as an intrinsically useless object or good used as medium of exchange. This class of models has been criticized for the...

Using local administrative data from 1826 to 1936, we document the evolution of crime rates in 19th century France and we estimate the impact of a negative income shock on crime. Our identification strategy exploits the phylloxera crisis. Between 1863 and 1890, phylloxera destroyed about 40% of...

<title>Abstract</title> This paper shows that modern monetary theory can be better understood through the differences between Menger and Walras. Since the 1980s, attempts to establish coherent microfoundations for monetary exchange have brought Menger's theory of the origin of money to the forefront and sent...

Using local administrative data from 1826 to 1936, we document the evolution of crime rates in 19th century France and we estimate the impact of a negative income shock on crime. Our identification strategy exploits the phylloxera crisis. Between 1863 and 1890, phylloxera destroyed about 40% of...

This paper shows that currency arrangements impact on credit available through default incentives. To this end we build a symmetric two-country model with money and imperfect credit market integration. With the Euro Area context in mind, we capture differences in credit market integration by...