Menu Costs and the Neutrality of Money

Andrew C. Caplin, Daniel F. Spulber

A model of endogenous price adjustment under money growth is presented. Firms follow (s, S) pricing policies and price revisions are imperfectly synchronized. In the aggregate, price stickiness disappears and money is neutral. The connection between firm price adjustment and relative price variability in the presence of monetary growth is also investigated. The results contrast with those obtained in models with exogenous fixed timing of price adjustment

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Year of publication:	July 1987
Authors:	Caplin, Andrew C.
Other Persons:	Spulber, Daniel F. (contributor)
Institutions:	National Bureau of Economic Research (contributor)
Publisher:	Cambridge, Mass : National Bureau of Economic Research
Subject:	Geldtheorie \| Monetary theory \| Neutralität des Geldes \| Neutrality of money \| Anpassungskosten \| Adjustment costs

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Extent:	1 Online-Ressource
Series:	NBER working paper series ; no. w2311
Type of publication:	Book / Working Paper
Language:	English
Notes:	Mode of access: World Wide Web System requirements: Adobe [Acrobat] Reader required for PDF files Hardcopy version available to institutional subscribers.
Other identifiers:	10.3386/w2311 [DOI]
Source:	ECONIS - Online Catalogue of the ZBW

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