environment with pairwise meetings, the money demand that is consistent with an optimal, incentive feasible allocation takes the …

We define continuous-time dynamics for exchange economies with fiat money. Traders have locally rational expectations … game involving a double-auction with limit-price orders. Money has a positive value except on optimal rest-points where it … nominal variables. Money is not neutral, either in the short-run or long-run, and a localized version of the quantity theory …

frictions to incorporate the interrelationship of money, search, and endogenous price dispersion. Inflation aspects welfare …

Existing search-theoretical model of money have in general abstracted from the existence and accumulation of other … assets, in particular, capital. In this paper we present a model where the optimal portfolio allocation decision of agents is … explicitly modeled. Trade frictions in a decentralized consumption goods market give rise to an endogenous role for money …

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 …