between notional and effective demands, and using it to explain price and quantity adjustments in conditions of unemployment …

completely general supply disturbances, using simple monetary rules based only on: (i) the current shock, (ii) the previous … forecast of the current shock, (iii) the forecast for just one period ahead. The optimal rule can be expressed in an infinite …

informational efficiency of the price system. We show that, when agents have private information about monetary shocks, the cost can …

Previous models of the demand for money are either inconsistent with contemporaneous adjustment of the price level to … changes in the nominal money supply. This paper proposes a shock-absorber model of money demand in which money supply shocks …. The shock-absorber variables significantly improve the estimated short-run money demand functions in every case …

the price decline having a much larger unanticipated component during the Depression, as well as less flexible wage …

We document the presence of both small and large price changes in individual price records from the CPI in France and … the US. After correcting for measurement error and cross-section heterogeneity, the size-distribution of price changes has … the ratio of kurtosis to the frequency of price changes is a sufficient statistics for the real effects of monetary policy …

predictions. Motivated by post-COVID inflation in the U.S., a model experiment shows that a one-time relative price shock …We provide theory and evidence that relative price shocks can cause aggregate inflation and act as aggregate supply … shocks. Empirically, we show that exogenous positive energy price shocks have a positive impact not only on headline but also …

financial institution recovers from the shock at a random time, the trader representing the institution observes this recovery … exposure. Cognition limits lengthen the market price recovery. They also imply that traders who find that their institution has … not yet recovered from the shock place market sell orders, and then progressively buy back at relatively low prices, while …