Altig, David E; Christiano, Lawrence J.; Eichenbaum, Martin - C.E.P.R. Discussion Papers - 2005
Macroeconomic and microeconomic data paint conflicting pictures of price behaviour. Macroeconomic data suggest that inflation is inertial. Microeconomic data indicate that firms change prices frequently. We formulate and estimate a model that resolves this apparent micro/macro conflict. Our...