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 provide a series of results for a standard model where exchange is facilitated by liquid
assets. Compared to past work, minimal structure is imposed on the mechanism determining …

We propose a new search-theoretic model of monetary exchange with indivisible assets,
based on price posting instead of bargaining, and incorporating noisy search. This yields …

We characterize optimal credit market interventions with respect to two fundamental frictions—
limited commitment and limited monitoring. We consider two classes of interventions: an …

Understanding money demand is important for our comprehension of macroeconomics and
monetary policy. Its instability has made this a challenge. Common explications for the …

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 …

A simple monetary model is constructed to explore dynamic interactions among the choice
of means of payment, bank's reserves, a liquidity shortfall, and monetary policy. In the …

This note studies the trade of indivisible goods using credit or money in a frictional market.
We show how indivisibility matters for monetary equilibrium under different assumptions …

Abstract In a New Monetarist framework, we study the trade of indivisible goods under credit,
divisible money and divisible asset in a frictional market. We show how indivisibility on the …

Many economists believe that prices are? sticky?? they adjust slowly. This stickiness, they
suggest, means that changes in the money supply have an impact on the real economy …