%0 Report %1 NBERw2476 %A Ball, Laurence %A Romer, David %B Working Paper Series %D 1990 %K adjustment_cost macro rigidities sticky_prices monetary policy %N 2476 %T Real Rigidities and the Non-Neutrality of Money %U http://www.nber.org/papers/w2476 %X Rigidities in real prices are not sufficient to create rigidities in nominal prices and real effects of nominal shocks. And, by themselves, small frictions in nominal adjustment, such as costs of changing prices, create only small non-neutralities. But this paper shows that substantial nominal rigidity can arise from a combination of real rigidities and small nominal frictions. The paper shows the connection between real and nominal rigidity given the presence of nominal frictions both in general and for several specific sources of real rigidity: costs of adjusting real prices, asymmetric demand arising from imperfect information, and efficiency wages.

@techreport{NBERw2476, abstract = {Rigidities in real prices are not sufficient to create rigidities in nominal prices and real effects of nominal shocks. And, by themselves, small frictions in nominal adjustment, such as costs of changing prices, create only small non-neutralities. But this paper shows that substantial nominal rigidity can arise from a combination of real rigidities and small nominal frictions. The paper shows the connection between real and nominal rigidity given the presence of nominal frictions both in general and for several specific sources of real rigidity: costs of adjusting real prices, asymmetric demand arising from imperfect information, and efficiency wages.}, added-at = {2013-03-07T18:59:17.000+0100}, author = {Ball, Laurence and Romer, David}, biburl = {https://www.bibsonomy.org/bibtex/2035c121b3a7d1c00343b7bc95daffbfc/jp}, description = {Real Rigidities and the Non-Neutrality of Money}, institution = {National Bureau of Economic Research}, interhash = {d5af9bbb731e43684c8a777b04b7efb4}, intrahash = {035c121b3a7d1c00343b7bc95daffbfc}, keywords = {adjustment_cost macro rigidities sticky_prices monetary policy}, month = {July}, number = 2476, series = {Working Paper Series}, timestamp = {2013-03-09T22:02:03.000+0100}, title = {Real Rigidities and the Non-Neutrality of Money}, type = {Working Paper}, url = {http://www.nber.org/papers/w2476}, year = 1990 }