We motivate and provide an overview to New Monetarist Economics. We then briefly describe the individual contributions to the <italic>Macroeconomics Dynamics</italic> special issues on money, credit, and liquidity.

Conventional wisdom is that inflation makes people spend money faster, trying to get rid of it like a “hot potato,” and this is a channel through which inflation affects velocity and welfare. Monetary theory with endogenous search intensity seems ideal for studying this. However, in standard...