TY  - JOUR
AU  - Caplin,Andrew C.
AU  - Spulber,Daniel F.
TI  - Menu Costs and the Neutrality of Money
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2311
PY  - 1987
Y2  - July 1987
UR  - http://www.nber.org/papers/w2311
L1  - http://www.nber.org/papers/w2311.pdf
N1  - Author contact info:
Andrew Caplin
Department of Economics
New York University
19 W. 4th Street, 6th Floor
New York, NY  10012
Tel: 212/998-8950
Fax: 212/995-3932
E-Mail: andrew.caplin@nyu.edu

Daniel Spulber
Kellogg School of Management, 606 Jacobs, Mgmt & S
Northwestern University
2001 Sheridan Road
Evanston, IL   60208-2001
Tel: 847 491-8675
E-Mail: jems@kellogg.northwestern.edu
AB  - A model of endogenous price adjustment under money growth is presented. Firms follow (s, S) pricing policies and price revisions are imperfectly synchronized. In the aggregate, price stickiness disappears and money is neutral. The connection between firm price adjustment and relative price variability in the presence of monetary growth is also investigated. The results contrast with those obtained in models with exogenous fixed timing of price adjustment.
ER  -