@techreport{NBERw10016,
 title = "On the Sluggish Response of Prices to Money in an Inventory-Theoretic Model of Money Demand",
 author = "Fernando Alvarez and Andrew Atkeson and Chris Edmond",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "10016",
 year = "2003",
 month = "October",
 URL = "http://www.nber.org/papers/w10016",
 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.},
}