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 …

In many industrialized countries, cash usage at points of sale has been decreasing owing to
competition from alternative means of payment such as credit cards. At the same time, cash …

We study the choice of payment instruments in a model with money and credit, where sellers
must invest in a record-keeping technology to accept credit and buyers have limited …

Recent years have witnessed the advances of e-money systems such as Bitcoin, PayPal
and various forms of stored-value cards. This paper adopts a mechanism design approach …

We characterize the equilibrium set of a two-good, pure-credit economy with limited
commitment, under both pairwise and centralized meetings. We show that the set of …

We develop a theory of money and credit as competing payment instruments, then put it to
work in applications. Agents use cash and credit because the former (latter) is subject to the …

Under what conditions are money and credit jointly essential for trade? We answer this
question by applying a mechanism-design approach to a standard monetary search model …

We develop a theory of money and credit as competing payment instruments, then put it to
work in applications. Buyers can use cash or credit, with the former (latter) subject to the …

The presumption that flexible internal prices render the exchange-rate regime neutral in the
presence of the aggregate shocks overlooks the channel that the current nominal quantity of …

We study an economy in which money and credit serve as a means of payment and the
settlement of credit requires money. The model extends recent developments in …