This essay surveys the new monetarist approach to liquidity. Work in this literature strives for
empirical and policy relevance, plus rigorous foundations. Questions include: What is …

Search-theoretic models of monetary exchange are based on explicit descriptions of the
frictions that make money essential. However, tractable versions of these models typically …

We compare three market structures for monetary economies: bargaining (search
equilibrium); price taking (competitive equilibrium); and price posting (competitive search …

We develop a search‐theoretic model of financial intermediation in an over‐the‐counter
market and study how trading frictions affect the distribution of asset holdings and standard …

In monetary models where agents are subject to trading shocks there is typically an ex post
inefficiency since some agents are holding idle balances while others are cash constrained …

The purpose of this paper is to discuss some of the models used in New Monetarist
Economics, which is our label for a body of recent work on money, banking, payments …

This article considers a search‐theoretic model of monetary exchange. Agents bargain over
both the amount of money and the quantity of goods to be exchanged in bilateral meetings …

Many individuals simultaneously have significant credit card debt and money in the bank.
The credit card debt puzzle is as follows: given high interest rates on credit cards and low …

This essay articulates the principles and practices of New Monetarism, our label for a recent
body of work on money, banking, payments, and asset markets. We first discuss …

This study analyzes economies with an essential role for liquid assets in the exchange
process. The model can generate multiple stationary equilibria, across which asset prices …