We apply business cycle accounting (BCA) to data generated by a representative model with investment wedges. Based on our findings, the criteria of BCA lead us to conclude that models with investment wedges are not promising for modeling business cycles.

We investigate a monetary model in which the centralized market opens once, but the decentralized markets open twice in each period. We show that there may be multiple stationary equilibria.

We study a monetary model in which buyers choose search intensity and prices are considered as given in a decentralized market. We indicate that the Friedman rule may not be optimal.