We examine the responses of prices and inflation to monetary shocks in an inventory-theoretic model of money demand. We …

with sticky goods prices. If prices are held fixed for at least one year, risk aversion is high, and preferences are …

large class of theories: (i) pricing-to-market, (ii) positive correlation of aggregate real export and import prices, (iii … elasticity of international trade flows. The behavior of quantities is shown to be on par with standard international business … cycle theories that, in contrast to our model, assume low intrinsic elasticity of substitution between domestic and foreign …

This paper studies two aspects of the behaviour of provincial relative prices in Spain: the relevance and the nature of … half point per year in the long-run), but deviations of relative prices from equilibrium can be very persistent. …

The fiscal theory of the price level has challenged the conventional view that monetary factors drive prices and …

in option prices. Consumption and dividends remain smooth, and the model is consistent with salient features of …