how convincing are menu costs in explaining nominal rigidities?

Answer 1

Menu costs are an argument in the reason there are sticky prices. The argument goes that prices do not adjust as quickly as they should because there is a cost to "reprint the menu" everytime prices change. Thus, prices change only periodically and adjust slower than they would if there were no menu costs. While this makes some sense, there are ways around this. For instance, menus can be printed without the price, and separate, cheaper sheets can be inserted with the prices, or prices can be written on boards. If you have ever been to a variety of restaurants, you will find that both these methods are employed, as well as simply stating the price in the menu.

Answer 2

Not very convincing at all.