alternative to money in transactions and is subject to productivity shocks. The model provides some improvement on certain puzzles …, in particular by capturing the procyclic movements of monetary aggregates, inflation and interest rates. And its …

buy the market good. An increase in inflation raises the price of the corruption service, reduces the non-market good …

The short-run non-neutrality of money and its implications for inflation dynamics are examined in a monetary search … generate short-run non-neutrality. The response of prices and inflation to shocks of this type depends on the changes in … thus may result in sluggish price adjustment and persistent inflation despite the absence of restrictions of sellers …

We present a simple sticky-price model with inventories and show that the employment response to a productivity shock … (decreases) when the depreciation rate on goods in storage is sufficiently low (high) following a productivity shock. We then … estimate the employment response to productivity shocks from the disaggregate U.S. manufacturing data from 1958 to 1996 …

constraints and endogenous labor productivity due to the so-called "nutrition curve". We show that in such an environment, any …