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 …

This paper develops an information-based theory of international currency based on search
frictions, private trading histories, and imperfect recognizability of assets. Using an open …

This paper studies the relationship between the availability of unsecured credit to
households and unemployment. We extend the Mortensen–Pissarides model to include a …

This paper considers an economy where central-bank-issued fiat money competes with
privately issued e-money. We study a policy-setting game between the central bank and the …

Many applications in monetary economics of search-and-bargaining theory use Shi–Trejos–
Wright, hereafter STW; many applications in finance use Duffie–Gârleanu–Pedersen …

We provide unified strategic foundations for the Nash (1950) and Kalai (1977) solutions in
the context of negotiations under liquidity constraints. We propose an N-round game where …

We introduce a new approach to bargaining, with strategic and axiomatic foundations, into
models of decentralized asset markets. According to this approach, which encompasses the …

The strategic importance of commitment in bargaining is widely acknowledged. Yet
disentangling its role from key features of canonical models, such as proposal power and …

We report on an experiment in which buyers and sellers engage in semi-structured
bargaining in two dimensions: how much of a good the seller will produce and how much …

This paper studies the dynamic aggregate relationship between unemployment and
consumer credit. First, using micro-level data I identify a consistent negative effect of …