variability, suggesting a link to sticky nominal prices. We also find that distance can explain failures of LOOP, suggesting the …

, price-setting conduct. Money is modeled as perfectly divisible and there is no constraint on agents' money inventories. In … such an environment with discounting, the endogenous heterogeneity of money balances among agents implies differences in … marginal valuation of money between distinct pairs of traders, which raises the question whether decentralized trade would …

This paper juxtaposes the policy trend towards price stability with the theoretical optimal quantity of money. After …

") other subjects' money. Those who burn the money of others have to give up some of their own cash. Despite this cost, and …' money holdings. We vary experimentally the amount that subjects have to pay to reduce other people's cash. The implied price …