The Macroeconomics of Sticky Prices with Generalized Hazard Functions

Sticky Prices vs . Sticky Information

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Sticky Demand vs. Sticky Prices

Sticky demand – sticky nominal spending – acts as a substitute for sticky prices. In an inventorytheoretic model of the demand for money, monetary injections are offset by endogenous movements in velocity that keep nominal spending flat. When embedded in a sticky price model, this reduces the model’s reliance on implausibly large amounts of exogenous stickiness. For example: 6 months asset mark...

A Differential Oligopoly Game with Sticky Prices and Environmental Externality

Sticky Prices and Indeterminacy

The aim of the present paper is to analyze the link between price rigidity and indeterminacy. This is done within a cash-in-advance economy from which we know that it exhibits indeterminacy at high degrees of relative risk aversion. I Þnd that price stickiness reduces the scope of these sunspot equilibria: sluggish price adjustment requires degrees of relative risk aversion compatible with inde...

Equilibrium Sticky Prices ∗

I offer a macroeconomic view of product markets that combines the desirable properties of the market-clearing models descended from the real business cycle model, on the one hand, and the sticky-price disequilibrium model of modern inflation analysis, on the other hand. I adhere strictly to the basic concept of equilibrium, in that buyers and sellers never transact in my model under conditions ...