Despite the general belief that a free flow of information enhances efficiency, social convention appears to call for secrecy regarding individuals' wages. This paper provides an explanation for this convention. The authors suggest that the role of wage secrecy is to reduce effective labor...

"This article examines how the aggregate production varies with inflation when there are fixed price- and quantity-adjustment costs. It shows that such variation is determined by the elasticity of the firms' marginal real revenue with respect to demand. The aggregate production decreases with...

This paper studies the consequences of costly price adjustments for the variability of real prices accompanying inflation. For constant- elasticity demand and cost of production, it is shown that a higher d emand, a lower cost of production, or a lower cost of price adjustmen t leads to less...