Sticky prices, money, and business fluctuations.: An article from: Journal of Money, Credit & Banking

This digital document is an article from Journal of Money, Credit & Banking, published by Ohio State University Press on May 1, 1991. The length of the article is 7124 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: Can nominal contracts create monetary non-neutrality if they arise endogenously in general equilibrium? They can when (i) agents have complete information about the money stock and (ii) shocks to the system are purely redistributive and private information so precluding conventional insurance markets. Without contracts, money is neutral toward aggregate quantities. However, risk-sharing between suppliers and demanders creates mutual gains to using nominal contracts. In particular, if an increase in the money growth rate signals a rise in the dispersion of shocks to demanders' wealth, then prices adjust only partially to monetary shocks and money is positively associated with output. (Printed by permission of the publisher.)

Citation Details
Title: Sticky prices, money, and business fluctuations.
Author: Joseph G. Haubrich
Publication:Journal of Money, Credit & Banking (Refereed)
Date: May 1, 1991
Publisher: Ohio State University Press
Volume: v23 Issue: n2 Page: p243(17)

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