Commenter pjz brings up transaction costs as a source of nominal rigidity on this post from a couple months ago. In responding, I found a great old post by Mark Thoma about some issues with macro modeling of nominal rigidity.
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Nominal rigidity is an entropic force
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Commenter pjz brings up transaction costs as a source of nominal rigidity on this post from a couple months ago. In responding, I found a great old post by Mark Thoma about some issues with macro modeling of nominal rigidity.