This paper quantifies the effects of drug monopolies and low per-capita income on pharmaceutical prices in developing …

shocks driving the economy and the systematic response of monetary policy to inflation: More flexible prices amplify the … effect of demand shocks on output if interest rates do not respond strongly to inflation, while higher flexibility amplifies … the effect of supply shocks on output if interest rates are very responsive to inflation. Next, we estimate a medium …

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 …