20%; (v) the overall frequency of price changes does not change much with inflation and does not react much to aggregate … shocks; (vi) changes in inflation are mostly driven by movements in the overall size; when decomposing the overall size … size of price decreases. These findings are consistent with the predictions of a menu cost model in a low inflation …

changes does not change much with inflation and does not react much to aggregate shocks; (vi) changes in inflation are mostly … consistent with the predictions of a menu cost model in a low inflation environment where idiosyncratic shocks are a more …