Output Fluctuations and Gradual Price Adjustment
NBER Working Paper No. 621 (Also Reprint No. r0190)
This paper reviews the leading ideas that have emerged within two paradigms of price adjustment. Neither, it appears, provides a satisfactory theoretical scheme when taken in isolation. This paper concludes that an attempt to merge the more convincing elements of each is needed, and some suggestions for such a merger are put forward.
Published: Gordon, Robert J. "Output Fluctuations and Gradual Price Adjustment." Journal of Economic Literature, Vol. XIX, No. 2, (June 1981), pp. 493-530.