between interest rates and housing wealth deflated by nominal output (by the money supply). It also implies the cost of …

We construct a search-theoretic model where fiat money coexists with real assets, and all assets can be used as a media … of exchange. The terms of trade in bilateral matches are determined by a pairwise Pareto-efficient pricing mechanism. We … facts: (i) fiat money can be valued despite being dominated in its rate of return; (ii) real assets with identical dividend …

money and inflation. When analysing the full sample of countries we find a strong positive relation between the long …-run inflation and money growth rate. The relation is not, however, proportional. The strong link between inflation and money growth … inflation and money growth for low inflation countries (on average less than 10% per annum over the last 30 years) is weak. We …

Conventional wisdom is that inflation makes people spend money faster, trying to get rid of it like a “hot potato,” and … exchange and hence reduces search effort. We replace search intensity with a free entry (participation) decision for buyers - i ….e., we focus on the extensive rather than intensive margin - and prove buyers always spend their money faster when inflation …

frictions to incorporate the interrelationship of money, search, and endogenous price dispersion. Inflation aspects welfare …

ability of money-based forecasts relative to a simple random walk benchmark model was high at medium-term forecasting horizons …