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 …

In an open market operation, the central bank swaps currency for bonds. We show how
injecting money in this way is different from transfers, the way policy is usually formulated …

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 …

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 theory of the role of assets in the exchange process and use it to study several
issues in macro, monetary, and financial economics, both analytically and quantitatively. Our …

The long-run welfare costs of inflation are studied in a micro-founded model with trading
frictions and costly liquidity management. By modelling the liquidity management decision …

This article argues that a pressing goal for macroeconomics is to incorporate financial
considerations, but we need models with solid microfoundations. In particular, the use of …

We study the Lagos and Wright (2005) model of monetary exchange in the laboratory. With a
finite population of sufficiently patient agents, this model has a unique monetary equilibrium …

We construct a continuous‐time new‐monetarist economy that displays an endogenous,
nondegenerate distribution of money holdings. Properties of equilibria are obtained …