STICKY PRICES: A NEW MONETARIST APPROACH

• 成果类型: Article
• 署名作者: Head, Allen; Liu, Lucy Qian; Menzio, Guido; Wright, Randall
• 署名单位: Queens University - Canada; International Monetary Fund; University of Pennsylvania; University of Wisconsin System; University of Wisconsin Madison; Federal Reserve System - USA; Federal Reserve Bank - Chicago; Federal Reserve System - USA; Federal Reserve Bank - Minneapolis
• 刊物名称: JOURNAL OF THE EUROPEAN ECONOMIC ASSOCIATION
• ISSN/ISSBN: 1542-4766
• DOI: 10.1111/j.1542-4774.2012.01081.x
• 发表日期: 2012
• 页码: 939-973
• 关键词: menu costs; money; MODEL; INFORMATION; inflation; search; dispersion; neutrality; ECONOMICS; DYNAMICS

摘要

Why do some sellers set nominal prices that apparently do not respond to changes in the aggregate price level? In many models, prices are sticky by assumption; here it is a result. We use search theory, with two consequences: prices are set in dollars, since money is the medium of exchange; and equilibrium implies a nondegenerate price distribution. When the money supply increases, some sellers may keep prices constant, earning less per unit but making it up on volume so profit stays constant. The calibrated model matches price-change data well. But, in contrast to typical sticky-price models, money is neutral.