Purpose – The purpose of this paper is to examine how firms respond to adverse supply shocks. Design/methodology/approach – This paper examines a supply shock within the framework of Mankiw's Menu Cost Model. Findings – The analysis in this paper illustrates that the type of adverse shock...

Purpose – The purpose of this paper is to study the process of price determination by the market in the existing variable fiat money regime and its consequences. Design/methodology/approach – Scientific knowledge pertaining to units and measurement has been applied to study the issue of...