Money, Payments, and Liquidity (Hardcover)

Money, Payments, and Liquidity By Ed Nosal, Guillaume Rocheteau Cover Image
We can probably get this title but the price is subject to change.


Two experts in monetary policy offer a unified framework for studying the role of money and liquid assets in the economy.

In Money, Payments, and Liquidity, Ed Nosal and Guillaume Rocheteau provide a comprehensive investigation into the economics of money and payments by explicitly modeling trading frictions between agents. Adopting the search-theoretic approach pioneered by Nobuhiro Kiyotaki and Randall Wright, Nosal and Rocheteau provide a logically coherent dynamic framework to examine the frictions in the economy that make money and liquid assets play a useful role in trade. They discuss the implications of such frictions for the suitable properties of a medium of exchange, monetary policy, the cost of inflation, the inflation-output trade-off, the coexistence of money, credit, and higher return assets, settlement, and liquidity.
After presenting the basic environment used throughout the book, Nosal and Rocheteau examine pure credit and pure monetary economies, and discuss the role of money, different pricing mechanisms, and the properties of money. In subsequent chapters they study monetary policy, the Friedman rule in particular, and the relationship between inflation and output under different information structures; economies where monetary exchange coexists with credit transactions; the coexistence of money and other assets such as another currency, capital, and bonds; and a continuous-time version of the model that describes over-the-counter markets and different dimensions of liquidity (bid-ask spreads, trade volume, trading delays).

About the Author

Ed Nosal is Vice President and Senior Research Advisor at the Federal Reserve Bank of Chicago.

Guillaume Rocheteau is Professor of Economics at the University of California, Irvine.

Product Details
ISBN: 9780262016285
ISBN-10: 0262016281
Publisher: The MIT Press
Publication Date: October 28th, 2011
Pages: 384
Language: English

Download Audiobooks

Libro.fmWe've partnered with to bring you a top-notch option for digital audiobooks. Take a look at our large catalog of recorded books at 

Dig Sylva LogoOur Neighbors: City Lights Cafe