how convincing are menu costs in explaining nominal rigidities?

Answer 1

Menu costs (more appropriately, menu-changing costs) can only account for a portion of the rigidities attributable to provision of goods and services where there is a sufficient cost of changing published prices, and where the incremental price rise is not sufficient to overcome that cost of changing published prices in the short-term.

Nominal rigidities as stemming from labor costs or in substantially inflationary environments cannot be explained in this fashion.