Conventional wisdom is that inflation makes people spend money faster, trying to get rid of it like a “hot potato,” and … this is a channel through which inflation affects velocity and welfare. Monetary theory with endoge- nous search intensity … exchange and hence reduces search effort. We replace search intensity with a free entry (participation) decision for buyers - i …

frictions to incorporate the interrelationship of money, search, and endogenous price dispersion. Inflation aspects welfare …This paper studies the effect of inflation on welfare in a monetary economy with price dispersion and consumer search …. When facing greater price dispersion with higher inflation, consumers search harder for lower prices, and increased search …

This paper juxtaposes the policy trend towards price stability with the theoretical optimal quantity of money. After …

unemployment is higher. We show that these correlations arise in a standard monetary search model with two shocks - productivity …

Existing search-theoretical model of money have in general abstracted from the existence and accumulation of other … explicitly modeled. Trade frictions in a decentralized consumption goods market give rise to an endogenous role for money …

This paper integrates monetary search theory with limited participation to analyze the liquidity effect of open market … matches. In a fraction of matches, buyers can use unmatured bonds together with money to purchase goods. In other matches, a …

We construct a search-theoretic model where fiat money coexists with real assets, and all assets can be used as a media … facts: (i) fiat money can be valued despite being dominated in its rate of return; (ii) real assets with identical dividend …

redistribute money holdings. The model provides a general framework that nests several existing search models as special cases for …, as well as the distribution of money. As inflation decreases, agents are induced to participate less frequently in the … centralized liquidity market, leading to a lower velocity of money, a smaller liquidity market, fewer resources spent on market …