We examine the responses of prices and inflation to monetary shocks in an inventory-theoretic model of money demand. We … show that the price level responds sluggishly to an exogenous increase in the money stock because the dynamics of … households' money inventories leads to a partially offsetting endogenous reduction in velocity. We also show that inflation …

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 …

where agents can hold an arbitrary amount of divisible money and where production is costly. At such an equilibrium, agents …’ money holdings are endogenously determined and uniformly bounded. A refinement of weakly undominated strategies is argued to … be necessary. It is shown that a continuum of single-price equilibria indexed by the aggregate real-money balance exists …

change and miss the cyclical variation in tariff rates that results from the impact of changing prices on the real value of …

the rate of appreciation in the purchasing power of money. The second covariance may take either sign which becomes …

crucially on the choice of price series used to measure relative prices and on the choice of trade partner. The relation is … stronger when we measure relative prices using producer prices rather than consumer prices. The relation is stronger the more …