The theory of money typically ignores the fact that the mode of market interaction arises endogenously, and simply assumes a decentralized, bilateral exchange process. However, endogenizing the organization of trade is critical for understanding the conditions that lend themselves to the...

In 2007 the Israeli real estate market changed its dominant unit of account from dollar to shekel. This unique, voluntary change is interesting for monetary theory, and also for monetary policy, since it eliminates most of the exchange rate pass-through to the Consumer Price Index. Using a large...

In 1686 the leadership of Massachusetts was involved in the first operational bank scheme in America. In 1688 this note-issuing bank was mysteriously aborted at an advanced stage. It was a unique opportunity for financial development that did not arise again for decades. I suggest a new, simple...