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 …

In this paper, authors first review the literature on the relation between finance and growth.
Theory provides ambiguous predictions concerning the question of whether financial …

ECONOMISTS HOLD startlingly different opinions regarding the importance of the financial
system for economic growth. Walter Bagehot (1873) and John Hicks (1969) argue that it …

This paper reviews, appraises, and critiques theoretical and empirical research on the
connections between the operation of the financial system and economic growth. While …

This paper addresses a basic, yet unresolved, question: Do claims on private assets provide
sufficient liquidity for an efficient functioning of the productive sector? Or does the state have …

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 …

The essential function of money is its role as a medium of exchange. We formalize this idea
using a search-theoretic equilibrium model of the exchange process that captures the" …

This paper examines the sets of feasible allocations in a large class of economic
environments in which commitment is impossible (following Myerson [8], the standard …

This paper develops a model of bank asset and liability management, based on the idea that
information problems make it difficult for banks to raise funds with instruments other than …

The goal of this paper is to extend existing search-theoretic models of fiat money, which until
now have assumed that the price level is exogenous, by explicitly incorporating bilateral …