The objective of this paper is to study the effects of government policies described as a search-theoretic (or random matching) model of money.  A search model is the right tool for the job because it generates an endogenous transactions pattern that allows one to determine in equilibrium which objects are accepted in which trades, and at what relative prices.  Our framework willi allow one to analyze the effects of government transactions policies on these outcomes, and to make precise how these effects depend on things like the size and influence of the government in the economy.