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 …

The purpose of this paper is to discuss some of the models used in New Monetarist
Economics, which is our label for a body of recent work on money, banking, payments …

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 …

A new edition of a book presenting a unified framework for studying the role of money and
liquid assets in the economy, revised and updated. In Money, Payments, and Liquidity …

We develop a model where agents can allocate their wealth between a liquid asset, which
can be used to purchase consumption goods, and an illiquid asset, which represents a …

We study infinite-horizon monetary economies characterized by trading frictions that
originate from random pairwise meetings, and commitment and enforcement limitations. We …

Can there be too much trading in financial markets? We construct a dynamic general
equilibrium model, where agents face idiosyncratic liquidity shocks. A financial market …

This paper reviews and extends recent research on liquidity and asset pricing. We start by
asking how can intrinsically-worthless fiat money be valued in equilibrium? The literature on …

A consistent empirical feature of bond yields is that term premia are, on average, positive.
The majority of theoretical explanations for this observation have viewed the term premia …

When agents are liquidity constrained, two options exist–sell assets or borrow. We compare
the allocations arising in two economies: in one, agents can sell government (outside) …