marginal costs, which should therefore be the driving force to observed inflation dynamics. This is not always the case in …) inflation, and underestimating the importance of (aggregate) marginal costs for (aggregate) inflation. We provide intuition for … looking pricing account for the observed persistence in aggregate inflation. Second, price-setting responds to movements in …

The New Keynesian Phillips curve explains inflation dynamics as being driven by current and expected future real … marginal costs. In competitive labour markets, the labour share can serve as a proxy for the latter. In this paper, we study … marginal costs by using newly available labour market data on worker finding rates. Over the business cycle, the measure is …

The Calvo contract Phillips Curve is widely indexed for general inflation, using either core inflation or other … that optimal indexation would by contrast use the rational expectation of inflation. If this scheme is implemented, the …

and capital transactions, in the Phillips curve. The evidence is consistent with the predictions of the theory. …

by nearly double-digit inflation and undergoing massive changes in market structure during the process of transition and …-linear. Product-specific inflation is typically highly persistent. We find that market structure is an important determinant of … depends negatively on the price dispersion and positively on the individual inflation, seems consistent with predictions of …

competition to influence domestic inflation. By comparing the unrestricted and restricted specifications, we provide evidence that … foreign competition plays an important role in accounting for the behavior of inflation in the traded goods sector. Our … inflation in the 1990s. Our results also provide evidence against demand curves with a constant elasticity in the context of …

This paper estimates the NAIRU (standing for the Non-Accelerating Inflation Rate of Unemployment) as a parameter that … varies over time. The NAIRU is the unemployment rate that is consistent with a constant rate of inflation. Its value is … determined in an econometric model in which the inflation rate depends on its own past values (‘inertia’), demand shocks proxied …

model, covering a panel of EU countries, and derives the implied long-run inflation-unemployment tradeoff. Our results …

measures of marginal cost as the relevant determinant of inflation, as the theory suggests, instead of an ad-hoc output gap …. Real marginal costs are a significant and quantitatively important determinant of inflation. Backward looking price setting …We develop and estimate a structural model of inflation that allows for a fraction of firms that use a backward looking …