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

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

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 …

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 …

higher-return assets. I describe an economy with pairwise meetings, where fiat money and risk-free capital compete as means … of payment. Whenever fiat money has an essential role, any constrained-efficient allocation is such that capital commands …This paper adopts mechanism design to tackle the central issue in monetary theory, namely, the coexistence of money and …

environment with pairwise meetings, the money demand that is consistent with a constrained-efficient allocation takes the form of … moderate inflation is zero. This result is robust to different assumptions regarding the observability of money holdings, the …