Search theoretic models of money emphasize monetary exchange as the outcome of economic environments characterized by bilateral trading frictions. This paper analyzes the efficiency of monetary exchange in a search model of fiat money where individuals invest costly effort in the exchange...

This paper investigates the relationship between money growth, inflation, and productive activity in a general equilibrium model where search frictions motivate the transactions role of money. The use of a multiple matching technique, where search frictions are captured by limited consumption...

Money and its underlying function as a medium of exchange play a central role in determining the course of macroeconomic activity. However, many of the models used to evaluate fundamental questions relating money and monetary policy to economic activity simply assume currency is valued and...