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 theoretical and empirical literature on the macroeconomic
implications of financial imperfections. It focuses on two major channels through which …

Abstract The Great Financial Crisis of 2007-09 confirmed the vital importance of advancing
our understanding of macrofinancial linkages, the two-way interactions between the real …

We analyze money and credit as competing payment instruments in decentralized
exchange. In natural environments, we show the economy does not need both: if credit is …

We develop a model where:(i) banks take deposits and make investments;(ii) their liabilities
facilitate third-party transactions. Other models have (i) or (ii), not both, although we argue …

Are financial intermediaries–in particular, banks–inherently unstable or fragile, and if so,
why? We address this theoretically by analyzing whether model economies with financial …

Bekaert et al.(2007) seem to partially contradict the previous two papers. Using a different
measure of growth opportunities (constructed by combining the country's pattern of industrial …

Over the past 25 years a new approach has been developed to study monetary theory and
policy, and more broadly to study liquidity. This approach sometimes goes by the name New …

We analyse the money-financed fiscal stimulus implemented in Venice during the famine
and plague of 1629–31, which was equivalent to a 'net-worth helicopter money'strategy–a …

This paper studies the impact of geographic banking restrictions on monetary policy
transmission. Exploiting the staggered state-level deregulation of US banking from the late …