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 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 …

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 …

We study the choice of payment instruments in a model with money and credit, where sellers
must invest in a record-keeping technology to accept credit and buyers have limited …

We analyse dynamic general equilibrium models with more-or-less directed search by
informed buyers and random search by uninformed buyers. This nests existing …

This paper studies the welfare cost of inflation in a frictional monetary economy with
endogenous consumer search. Equilibrium entails price dispersion, where sellers compete …

In this paper, we focus on the Lagos and Wright (2005) monetary search model-a workhorse
in the so-called New Monetarist Economics. After describing this micro-founded yet tractable …

This paper uses a New Monetarist framework to study the trade of indivisible goods with
divisible money in a frictional market. We first derive conditions under which stationary …

We provide a simple model that relates the search intensity of households for products to the
price distribution and the wage. Households decide how much time to spend on work and …

Abstract Chapter 1: Feasibility, Desirability, and Stability of Currency Unions A two-country,
one-currency search-theoretic model is developed to explore the criteria of forming a …