Lack-of-Recall and Centralized Monetary Trade

We introduce "lack-of-recall" of past transactions as an alternative assumption to anonymity in a model where trade is centralized. In environments where there is an intertemporal lack-of-double-coincidence of wants problem and lack-of-commitment, lack-of-recall can give rise to monetary equilibria that dominate nonmonetary outcomes in terms of welfare. Copyright 2004 by the Economics Department Of The University Of Pennsylvania and Osaka University Institute of Social and Economic Research Association.