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 …

When does a swap between private and public money leave the equilibrium allocation and
price system unchanged? To answer this question, the paper sets up a generic model of …

This review describes interactions between monetary and fiscal policies that affect
equilibrium price levels and interest rates by critically surveying theories about (a) optimal …

A wide body of empirical evidence finds that approximately 25 percent of fiscal stimulus
payments (eg, tax rebates) are spent on nondurable household consumption in the quarter …

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 …

We review the theories on how liquidity affects the required returns of capital assets and the
empirical studies that test these theories. The theory predicts that both the level of liquidity …

We survey a representative sample of US individuals about how well leading academic
theories describe their financial beliefs and decisions. We find substantial support for many …

We provide the impact on asset prices of search-and-bargaining frictions in over-the-counter
markets. Under certain conditions, illiquidity discounts are higher when counterparties are …

We develop a model of the market for federal funds that explicitly accounts for its two
distinctive features: banks have to search for a suitable counterparty, and once they meet …

We consider a model where investors can invest directly or search for an asset manager,
information about assets is costly, and managers charge an endogenous fee. The efficiency …