Information, Sticky Prices and Macroeconomic Foundations

Allan H. Meltzer

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Monetary Policy and Economic Impact Economic Theory and Policy Economic theories and models

Abstract

The author proposes that sluggish price adjustment is necessary for monetary policy to have real effects. His purpose is to provide microeconomic foundations for price setting and the gradual adjustment of prices to new information.

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1921Risk, Uncertainty and Profit 1972Expectations and the neutrality of money 1994A Sticky-Price Manifesto 1982Price Inertia and Policy Ineffectiveness in the United States, 1890-1980 2009Inflation Persistence 1991Globalization of financial markets 1989New Classical Macroeconomics: A Sympathetic Account

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