TY  - JOUR
AU  - Stockman,Alan C.
TI  - Price Contracts, Output, and Monetary Disturbances
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1960
PY  - 1986
Y2  - June 1986
UR  - http://www.nber.org/papers/w1960
L1  - http://www.nber.org/papers/w1960.pdf
N1  - Author contact info:
Alan C. Stockman
Department of Economics
University of Rochester
Rochester, NY  14627-0156
Tel: 585/275-7214
Fax: 585/256-2309
E-Mail: N/A user is deceased
AB  - This paper presents a simp1e example in which incomplete asset markets create
incentives for buyers and sellers to sign contracts that specify a price
function which differs from the spot market equilibrium price function. The
price function can exhibit downward stickiness in nominal prices, In the
sense that a fall in the money supply reduces nominal prices less than
proportionately and reduces real output. This equilibrium dominates spot
market equilibrium in terms of expected utility.
ER  -