. We report that the different approach to modeling money - reduced-form vs. explicit role - neither induces theoretical …. To illustrate, when cash prices are equally distorted in both models equally large welfare costs of inflation are … mechanism that governs cash transactions, not the explicit microfoundation of money. …

money holdings. Properties of equilibria are obtained analytically and equilibria are solved in closed form in a variety of … cases. Lump-sum transfers financed with money creation are welfare-enhancing when labor productivity is low whereas … preferences and the velocity of money under heterogeneous preference shocks. …

crowding out are raised. Some aspects of inflation and hyper-inflation are then discussed. The conditions for the establishment …