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 …

This paper surveys the growing literature on payments. We begin by presenting a simple
model that illustrates the essential function of payments and how this may be implemented …

We study the long-run relation between money (inflation or interest rates) and
unemployment. We document positive relationships between these variables at low …

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 …

What determines which assets are used in transactions? We develop a framework where the
extent to which assets are recognizable determines the extent to which they are acceptable …

Macroeconomic theories have traditionally been tested using nonexperimental field data,
most often national income account data on GDP and its components. This practice follows …

An extensive literature in monetary theory has emphasized the role of money as a record‐
keeping device. Money assumes this role in situations where using credit would be too …

We develop a model of monetary exchange where, as in the random matching literature,
agents trade bilaterally and not through centralized markets. Rather than assuming they …

An important function of banks is to issue liabilities, like demand deposits, that are relatively
safe and liquid. We introduce a risk of theft and a safe-keeping role for banks into modern …

The quintessential crime of the information age is identity theft, the malicious use of personal
identifying data. In this paper we model “identity” and its use in credit transactions. Various …