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The New Palgrave Dictionary of Economics pp 12083–12089Cite as

Palgrave Macmillan

Search-and-Matching Models of Monetary Exchange

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Abstract

We review a class of equilibrium search (matching) models that can be used to study the trading process and develop a theory of money as a medium of exchange. Developing such a theory is one of the longest-standing issues in economics, and search-based models provide a natural framework in which to formalize venerable stories about money facilitating trade by avoiding the double coincidence of wants problem in pure barter. The approach provides a compelling microfoundation for monetary theory: it is based on sound economic thinking going back to the classical economists, brought up to date with modern and rigorous methods.

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Authors and Affiliations

  1. http://link.springer.com/referencework/10.1007/978-1-349-95121-5

    Randall Wright

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  1. Randall Wright
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Wright, R. (2018). Search-and-Matching Models of Monetary Exchange. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_1941

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