; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Sticky Prices: A New Monetarist Approach"; ; "batchuser@example.com"; "Head, Allen", "Liu, Lucy Qian", "Menzio, Guido", "Wright, Randall D."; "Federal Reserve Bank of Minneapolis"; "Sticky prices", "Money", "Neutrality", "Monetary policy"; "E52 - Monetary Policy", "E31 - Price Level; Inflation; Deflation", "E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems"; "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 with other sticky-price models, money is neutral. "^^; "2011-10-11"; "2019-06-24T18:38:49.885901701+00:00"^^; "https://doi.org/10.21034/wp.690"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "Wed Oct 23 17:47:59 2019"; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "460", "516", "322", "859"; "Working paper (Federal Reserve Bank of Minneapolis. Research Department)"; "690"; "Monetary policy", "Sticky prices", "Neutrality", "Money"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; ; "Publication" . ; .