A simple matching-model of money with the potential for counterfeiting is constructed. In contrast to the existing …

-theoretic framework. We allow money-holders to choose the intensities with which they search for trading partners, so inflation affects …

analyze an economy where there is no transaction demand for money balances: Money is a mere unit of account. We determine a … transaction role for money. In the absence of menu costs, the Friedman rule is optimal. In the presence of menu costs, the optimal …

. We show that the same frictions that give fiat money a positive value generate an inefficient quantity of goods in each …

friction in order to generate a role for money and intermediation. The authors ask whether there is any reason to expect the … emergence of a banking sector (i.e., institutions that combine the business of money creation with the business of … money (a debt instrument that circulates as a means of payment); (2) lends it out (swapping it for less liquid forms of debt …

I study random-matching economies where at money coexists with real assets, and no restrictions are imposed on payment … the usefulness of at money. The liquidity of the real asset, as measured by its transaction velocity, is shown to depend …