Gagliardone, Luca; Gertler, Mark; Lenzu, Simone; … - 2024
, which features marginal cost as the relevant real activity variable. Using quarterly micro data on prices, costs, and output … and real rigidities in price setting. Our estimates imply a high slope for the marginal cost-based Phillips curve, which … the difference by demonstrating that, although the pass-through of marginal cost into inflation is substantial, the …