We review the positive and normative effects of a minimum wage in various versions of a search-theoretic model of the labor market.

This paper develops a model of currency circulation under asymmetric information. Agents are heterogeneous and trade in bilateral matches. Coins are intrinsically valuable and are available in two weights, light and heavy. We characterize the equilibrium under complete information and under...

This paper investigates the welfare effects of inflation in economies with search frictions and menu costs. We first analyze an economy where there is no transaction demand for money balances: Money is a mere unit of account. We determine a condition under which price stability is optimal and a...

We study general equilibrium with nonconvexities. In these economies there exist sunspot equilibria without the usual assumptions needed in convex economies, and they have good welfare properties. Moreover, in these equilibria, agents act as if they have quasi-linear utility. Hence wealth...

We study economies with an essential role for liquid assets in transactions. The model can generate multiple stationary equilibria, across which asset prices, market participation, capitalization, output and welfare are positively related. It can also generate a variety of nonstationary...

Intro -- Contents -- Acknowledgments -- Introduction -- Models Where Money Is Useless -- Models Where Money Is Essential -- Beyond Monetary Exchange: Credit and Liquidity -- Tour of the Book -- Chapter 1. The Basic Environment -- 1.1 Benchmark Model -- 1.2 Variants of the Benchmark Model -- 1.3...