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 …

We study how introducing a central bank digital currency affects equilibrium allocations and
welfare in an environment where both currency and bank deposits are used in exchange …

We characterize various currencies according to their control structure, focusing on
cryptocurrencies such as Bitcoin and government-issued fiat money. We then argue that …

We build a macrofinance model of shadow banking—the transformation of risky assets into
securities that are money‐like in quiet times but become illiquid when uncertainty spikes …

We develop a tractable model of banks' liquidity management with an over‐the‐counter
interbank market to study the credit channel of monetary policy. Deposits circulate randomly …

ABSTRACT A theory of money needs a proper place for financial intermediaries.
Intermediaries diversify risks and create inside money. In downturns, micro-prudent …

This paper analyses the possibility and the consequences of rational bubbles in a dynamic
economy where financially constrained firms demand and supply liquidity. Bubbles are more …

Starting with a blank slate, how could one design the institutions of a central bank for the
United States? This paper explores the question of how to design a central bank, drawing on …

A model of public and private liquidity integrates financial intermediation theory with a New
Monetarist monetary framework. Non-passive fiscal policy and costs of operating a currency …

Debates about the nature and economic role of money are mostly informed by evidence
from the twentieth century, but money has existed for millennia. We argue that there are …