Competitive Price Adjustment to Changes in the Money Supply
研究竞争市场中卖方如何调整价格以应对货币供给变化，发现小变动时货币与产出正相关但无非自愿失业，大变动时货币与就业正相关且出现非自愿失业。
In a competitive environment in which (ex ante) identical sellers set prices, the market price cannot always be based on updated information, since otherwise there will be no incentive to gather information about changes in demand. This result is applied to the case in which changes in the money supply are the only source of uncertainty. It is shown that, if the possible changes in the money supply are not large, the economy will exhibit a positive relationship between money and output but no involuntary unemployment. If the possible changes in the money supply are large, the economy will exhibit a positive relationship between money and employment, allowing for involuntary unemployment.