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He is also known for an alternative model of sticky prices.
Economists have tried to model sticky prices in a number of ways.
When these stickier prices eventually rise, Australia’s terms of trade will deteriorate, even if they do not go back to 2003-04 levels.
Kinked demand was an initial attempt to explain sticky prices.
Have you ever bought an item with a large, sticky price ticket which you simply could not remove completely?
John Hicks thought that this might be another reason (along with sticky prices) for persistently high unemployment.
The synthesis attributed problems with market clearing to sticky prices that failed to adjust to changes in supply and demand.
This may have reflected, at least in part, the lack of conclusive evidence on the extent and importance of sticky prices.
What is the meaning of "sticky prices"?
If you didn't stop to find out why useful business cycle models still need to incorporate "sticky prices," click .
Sticky prices are typically found in markets with less aggressive price competition, so there are fewer or no cycles.
At some point, merchants find that they can not gain profit if they cut the price further- so the sticky price remains.
Sticky prices are our friends.
How to remove sticky price labels.
Margins are rising, too, as factories idled during the downturn lead to tighter markets and stickier prices.
We begin the analysis of sticky prices by recalling the policy implications of the flexible-price model developed in the previous chapter.
Sticky prices, leverage and Pascal’s wager.
"Some Evidence on the Importance of Sticky Prices."
Imperfect competition and sticky prices.
Since the equilibrium price is not observed, tests for sticky prices thus require a model of the equilibrium price.
Gregory Mankiw took the menu-cost idea and focused on the welfare effects of changes in output resulting from sticky prices.
However, based on sticky prices and other rigidities, the synthesis does not embrace the complete neutrality of money proposed by earlier new classical economists.
Firms with time-dependent price reviews have far stickier prices than do state-dependent price reviewers.
Based on theoretical foundations, we will study the effects of monetary policies, sticky prices, economic growth, exchange rates, and commitment problems of policy-makers.
Partly because of uncertainty, post-Keynesians take a different stance on sticky prices and wages than new Keynesians.