The second chapter presents a model with different types of liquidity - money and assets - and capital and focuses on endogenous differences in liquidity balances generated by differing access to asset markets as the portfolio of an agent can only be adjusted when a participation fee is paid....

The first chapter studies a general equilibrium model of cash and bank deposits in a search framework of money. Buyers hold cash and deposit their savings in a bank account for liquidity insurance. Given that consumption goods are traded in anonymous meetings using cash, agents withdraw their...

In the third chapter, we propose a model where agents must use cash balances to pay taxes, recasting the coordination problem of monetary and fiscal policy. This gives rise to a change in the timing of real government revenue as the government acquires real goods by sale of real balances....