shocks driving the economy and the systematic response of monetary policy to inflation: More flexible prices amplify the … shocks, ask: Would the U.S. economy have been more or less stable had prices been more flexible than historically? Our main …

Conventional wisdom suggests that producer prices are more rigid than consumer prices and therefore play less of a role … for the producer price index, we find that producer prices for finished goods and services in fact exhibit roughly the … same rigidity as consumer prices that include sales and substantially less rigidity than consumer prices that exclude them …

inflation. The Michigan Survey of Consumers uses questions about "prices in general" to measure expected and perceived inflation … specific prices when being asked about "prices in general." Here, we randomly assigned respondents to questions about "prices … and more dispersed for "prices in general" than for "the rate of inflation," with "prices you pay" and "prices in general …

This paper analyzes the dynamics of prices and wages using a limited information approach to estimation. I estimate a … two-equation model for the determination of prices and wages derived from an optimization-based dynamic model in which … both goods and labor markets are monopolistically competitive; prices and wages can be reoptimized only at random intervals …