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On the Sluggish Response of Prices to Money in an Inventory-Theoretic Model of Money Demand
| Content Provider | Semantic Scholar |
|---|---|
| Author | Álvarez, F. Atkeson, Andrew G. Edmond, Chris |
| Copyright Year | 2003 |
| Abstract | We exposit the link between money, velocity and prices in an inventory-theoretic model of the demand for money and explore the extent to which such a model can account for the short-run volatility of velocity, the negative correlation of velocity and the ratio of money to consumption, and the resulting stickiness' of the aggregate price level relative to a benchmark model with constant velocity. We find that an inventory-theoretic model of the demand for money is a natural framework for understanding these aspects of the dynamics of money, velocity and prices in the short run. |
| File Format | PDF HTM / HTML |
| DOI | 10.3386/w10016 |
| Alternate Webpage(s) | https://economics.yale.edu/sites/default/files/files/Workshops-Seminars/Macroeconomics/alvarez-031202.pdf |
| Alternate Webpage(s) | http://pages.stern.nyu.edu/~cedmond/Alvarez%20Atkeson%20Edmond%20NBER%20w10016%202003.pdf |
| Alternate Webpage(s) | https://doi.org/10.3386/w10016 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
