Hoarding of money-supply increases can explain long and variable lags from money-supply changes to changes in aggregate expenditure and average prices. The Archibald-Lipsey model relies upon differences in income elasticities of demand for real money balances to explain aggregate hoarding of money-supply changes. Consequently, there is no presumption that average prices and aggregate expenditure will lag behind money-supply increases. This paper presents a general equilibrium model where money supply increases are partially hoarded in the short run. Lagged adjustment results from intertemporal substitution, rather than income effects, and the adjustment of aggregate expenditure and average prices is monotonic. Copyright 1990 by The London School of Economics and Political Science.