That is a new American Economic Review piece by Daniel Chen and Darrell Duffie. My slight rewording of their argument is this: with market fragmentation, you can split up your order across exchanges and thus submit more total orders, with less fear of the prices moving against you. Fair enough, but what does this mean for the supposed greater efficiency of a single medium of exchange? Might there be reasons why a multitude of exchange/payment media, including foreign currencies and crypto, could give you further liquidity?
#NewMonetaryEconomics
