The output-inflation trade-off is investigated in a rational expectations equilibrium economy in which costly price setting makes it inefficient for agents to vary their prices at every instant. It is shown that "sticky prices" are not some exogenous source of output fluctuation but result from the monetary policy process. An economy with slow and counterinflationary money growth exhibits staggered changes in sticky prices as assumed in some "new-Keynesian" analyses. An economy with fast money growth and a high degree of monetary accommodation exhibits either flexible prices or "bunched," frequently changing sticky prices.

What is the body of knowledge that we call macroeconomics at which the Principles course is a first look? Does today's Principles course provide the student with an introductory glimpse at macroeconomics, as it exists today? These are the questions that this paper addresses. To provide focus, I restrict my attention to a narrow part of the literature: the textbooks. Although textbooks reflect the views of their authors, they also represent an attempt on the part of authors and publishers to distill the views of the profession. Users, potential users, and hoped-for users review textbooks, and they are revised extensively to match perceptions of the delicate mix of market demand and author judgment. Therefore, I claim that the textbook database provides a valid source for addressing my questions. I begin by looking at the content of today's advanced macro course.

The output-inflation trade-off is investigated in a rational expectations equilibrium economy in which costly price setting makes it inefficient for agents to vary their prices at every instant. It is shown that "sticky prices" are not some exogenous source of output fluctuation but result from the monetary policy process. An economy with slow and counterinflationary money growth exhibits staggered changes in sticky prices as assumed in some "new-Keynesian" analyses. An economy with fast money growth and a high degree of monetary accommodation exhibits either flexible prices or "bunched," frequently changing sticky prices.

We use a unique data set to investigate whether a matching model can describe turnover in an accounting firm. The main focus of the article is to determine whether the probability of separation from employment varies in the way described by Jovanovic. The evidence suggests that as tenure increases both terminations and quits follow the predicted pattern.