This paper examines the role of money when private information about the quality of the goods is present. In the private information environment, barter exchange for high-quality goods is rare since people have incentive to produce low-quality goods and attempt to cheat uninformed trading...

In this paper, the authors use the vector autoregression method to examine the effects of monetary policy in Canada including the empirical evidence of the liquidity effect in particular. They use the excess cash reserves of the chartered banks and the surprise component of excess cash reserves...