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 …

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 …

Should a central bank take over the provision of e-money, a circulable electronic liability?
We discuss how e-money technology changes the tradeoff between public and private …

Many applications in monetary economics of search-and-bargaining theory use Shi–Trejos–
Wright, hereafter STW; many applications in finance use Duffie–Gârleanu–Pedersen …

A well-functioning monetary system is characterized by public and private forms of money
that exchange at par as value flows freely between them. This is essential for efficient …

Privately issued money often bears default risk, which creates transaction frictions when
used as a medium of exchange. The late 19th century US provides a unique context to …

We show that decentralized privately created money with unstable values can hinder the
traded, more transaction-friction sensitive, sector of the economy. We do so in the context of …

This paper studies the determinants of the usage of alternative currencies (currencies which
exists parallel to the national currency of a country) across countries. We find that monetary …

Bank notes were the largest component of the antebellum money supply despite losses as
high as 5 percent in some years. Using a comprehensive bank-level panel of note discounts …

We compare allocations sustained by credit with allocations sustained by bank notes (inside
money) in a search model with decentralized trade and limited monitoring. We demonstrate …