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 essay surveys the literature on directed search and competitive search equilibrium,
covering theory and a variety of applications. These models share features with traditional …

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 …

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 …

The effects of money (anticipated inflation) on capital formation is a classic issue in
macroeconomics. Previous papers adopt reduced-form approaches, putting money in the …

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 …

Informational asymmetries regarding the future value of assets affect their role in exchange. I
construct a random-matching economy composed of two assets: a risk-free bond and a …

Why do some sellers set nominal prices that apparently do not respond to changes in the
aggregate price level? In many models, prices are sticky by assumption; here it is a result …

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 …