OxTalks will soon move to the new Halo platform and will become 'Oxford Events.' There will be a need for an OxTalks freeze. This was previously planned for Friday 14th November – a new date will be shared as soon as it is available (full details will be available on the Staff Gateway).
In the meantime, the OxTalks site will remain active and events will continue to be published.
If staff have any questions about the Oxford Events launch, please contact halo@digital.ox.ac.uk
We introduce price posting and search frictions into Townsend’s (1980) monetary macro model. Despite costless price adjustment, insufficient search incentives prevent Walrasian outcomes. The set of possible stationary equilibria comprises a finite interval of constant-inflation price paths. We assume that inflation expectations are rational and that they are stationary whenever possible. In this model, transitory small shocks temporarily affect quantities but not prices. However, large shocks—or accumulations of smaller shocks—can move the entire interval of equilibrium price paths beyond the previous path, forcing price adjustment. Even if shocks are temporary, such price movements create persistent changes in output.
