models necessary to account for the dynamics of output and inflation. We argue here, in the spirit of Bils and Kahn (2000 … ordering costs. We find that, for low rates of depreciation similar to those in the data, inventories are highly sensitive to …

response to changes in relative prices. This substitution effect will cause the CPI to grow faster than the cost of living … December 1986 and December 1995. This bias could be eliminated by using a superlative index to aggregate prices across the item …

period of deflation. We show that much of the correlation between import prices and domestic prices was due to formula biases … prices did not behave differently from the prices of other importers. Although Chinese prices are substantially lower than … the prices of other exporters, they do not exhibit a differential trend. However, we estimate that the typical price per …

I present and solve the problem of a producer who faces costs of acquiring, absorbing, and processing information. I … producers. I apply these results to a model of inflation. I find that the model can fit the quantitative facts on post …-war inflation remarkably well, that it is a good forecaster of future inflation, and that it survives the Lucas critique by fitting …

curve yields estimates of the welfare costs of modest departures from Friedman's zero nominal interest rate rule for the … low but still positive rates of inflation, provides an adequate approximation in welfare terms to the alternative of …

utility constant given a change in current home prices. We demonstrate that, up to a first-order approximation, there is no …

instability during 1820-1931, and that inflation rate shocks contributed to instability during 1972-99. Both the nature of …

not present in preventing or combating inflation, deflation can be prevented and, if it has taken hold, can be overcome …

This paper discusses the NAIRU -- the non-accelerating inflation rate of unemployment. It first considers the role of … influences both inflation and unemployment. The exact value of the NAIRU is hard to measure, however, in part because it changes …