Berentsen, Aleksander; Camera, Gabriele; Waller, Christopher - In: Economic Theory 24 (2004) 4, pp. 887-906
We construct a tractable ‘fundamental’ model of money with equilibrium heterogeneity in money balances and prices. We do so by considering randomized monetary trades in a standard search-theoretic model of money where agents can hold multiple units of indivisible ‘tokens’ and can offer...