This paper studies the existence of single-price price equilibrium from a given initial distribution of money holdings in a search-theoretic model of money where agents have no time preference. The model is similar to the authors' recent models of search economies with no constraints on money...

We consider a version of Kiyotaki and Wright's monetary search model in which agents can hold arbitrary amounts of divisible money. A continuum of stationary equilibria, indexed by the aggregate real-money stock, exist with all trading occurring at a single price. There is always a maximum level...

This paper investigates the existence and properties of stationary single-price equilibrium in a monetary random matching model where agents can hold an arbitrary amount of divisible money, and where production is costly. For some parameter values of the model, there exists a continuum of...

An intuitively natural consistency condition for contingent plans is necessary and sufficient for a contingent plan to be rationalized by maximization of conditional expected utility. One alternative theory of choice under uncertainty, the weighted-utility theory developed by Chew Soo Hong...

In a finite-trader version of the Diamond-Dybvig (1983) model, the symmetric, ex-ante efficient allocation is implementable by a direct mechanism (i.e., each trader announces the type of his own ex-post preference) in which truthful revelation is the strictly dominant strategy for each trader....

Freeman (1996) formulates a model in which payment arrangements based on intermediated debt that is settled using money can achieve higher welfare than direct money payment achieves. Freeman finds that a monetary authority can sometimes further improve welfare, and achieve efficiency, by...

In a finite-trader version of the Diamond-Dybvig (1983) model, the symmetric, ex-ante efficient allocation is implementable by a direct mechanism (i.e., each trader announces the type of his own ex-post preference) in which truthful revelation is the strictly dominant strategy for each trader....

This paper provides a construction of an uncountable family of i.i.d. random vectors, indexed by the points of a nonatomic measure space, such that (a) samples are measurable functions from the index space, and (b) an exact analogue of the Glivenko-Cantelli theorem holds with respect to the...

These notes concern a model of an economy where the following four things happen in an equilibrium. + Fiat money is useful as a medium of exchange. Consequently it has value. + Some trades are also financed by the issuance of private IOUs, and money must be used to pay these off. + Besides there...

A current U.S. policy is to introduce a new style of currency that is harder to counterfeit, but not immediately to withdrawal from circulation all of the old-style currency. This policy is analyzed in a random-matching model of money, and its potential to decrease counterfeiting in the long run...