Short-Run Effects of Money When Some Prices Are Sticky - Economic Quarterly, Summer 1994 - Federal Reserve Bank of Richmond
Short-Run Effects of Money When Some Prices Are Sticky
Short-Run Effects of Money When Some Prices Are Sticky - Economic Quarterly Summer 1994
Short-Run Effects of Money When Some Prices Are Sticky - Economic Quarterly, Summer 1994 - Federal Reserve Bank of Richmond
Article
Summer
1994
Lee E. Ohanian {leeoha1}
Alan C. Stockman {alasto1}
<p>The effects of monetary disturbances differ across sectors when some prices can adjust more rapidly than others. In a model economy with two sectors possessing different speeds of price adjustment, monetary shocks generate inverse movements of real interest rates, alter relative prices, and generate sectoral reallocations of labor. Factors such as the willingness of households to substitute goods across sectors and over time affect the economy's response.</p>
/RichmondFedOrg/publications/research/economic_quarterly/1994/summer/pdf/stockman.pdf
Economic Growth and Business Cycles
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Business Cycles
Economic Growth
<p>The effects of monetary disturbances differ across sectors when some prices can adjust more rapidly than others. In a model economy with two sectors possessing different speeds of price adjustment, monetary shocks generate inverse movements of real interest rates, alter relative prices, and generate sectoral reallocations of labor. Factors such as the willingness of households to substitute goods across sectors and over time affect the economy's response.</p>
Economic Quarterly
Summer
1994