I review in this paper some recent literature that deals with the coexistence of inside and outside money in a matching model of money à la Kiyotaki and Wright. I examine first a class of models that introduce credit by assuming that some agents’ actions can be monitored and punished by the...

In this paper we propose a model in which there are ideological and strategic voters who vote under proportional rule. We prove that the behavior of ideological voters matters for the determination of the outcome. We show that a subset of strategic voters partially counteracts the votes of the...

This paper studies economy-wide fluctuations that occur endogenously in the presence of monetary and real assets. Using a standard monetary search model, we consider an economy in which agents can increase consumption, over and above what their liquid monetary asset holdings would allow,...

We consider a model where policy motivated citizens vote in two simultane- ous elections, one for the President who is elected by majority rule, in a single national district, and one for the Congressmen, each of whom is elected by ma- jority rule in a local district. The policy to be...

I propose a model where agents choose to conduct their business using two payment instruments, money and bilateral credit. A friction in the timing of transactions rationalizes the use of both instruments and makes it optimal for agents to use money as a means of settlement for credit. Money and...

In this paper we propose a model in which there are ideological and strate- gic voters who vote under poportional rule. We prove that the behavior of ideological voters matters for the determination of the outcome. We show that a subset of strategic voters partially counteracts the votes of the...

We consider a model where policy motivated citizens vote in two simultaneous elections, one for the President who is elected by majority rule, in a single national district, and one for the Congressmen, each of whom is elected by majority rule in a local district. The policy to be implemented...