for understanding the modern economy. The focus of this volume is the money prices of commodities. In light of the failure … mainstream approach to the explanation of prices. Howard Nicholas underlines the shortcomings of this and other approaches to the … explanation of prices, particularly their concepts of the value of the commodity and money. He argues the problems with all other …

We analyze optimal discretionary monetary policy in an endogenous sticky prices model. Similar models with exogenous … sticky prices can deliver multiple equilibria. This is a necessary condition for the occurrence of expectation traps (when …-inflation equilibrium. With endogenous sticky prices, the monetary authority does not validate high-inflation expectations and deviates to …

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 …

A model that contains no costs to changing prices but in which prices do not respond to nominal shocks is presented. In … equilibrium in which sticky prices are supported without menu costs is then constructed. In equilibrium firms choose to keep … prices fixed in response to nominal shocks because doing so provides a service to their customers, increasing profits by …

-optimal equilibrium that would occur under completely flexible wages and prices; that is, the model exhibits a tradeoff between … stabilizing the output gap, price inflation, and wage inflation. The Pareto optimum is attainable only if either wages or prices …

This paper studies optimal fiscal and monetary policy under sticky product prices. The theoretical framework is a … Ramsey allocation when prices are flexible. The finding is in line with a recent body of work on optimal monetary policy …