stronger bargaining position when they try to prevent a cut in money wages. If inflation is so low that some money wages have … to be cut, workers stronger bargaining position requires higher unemployment in equilibrium. However, inflation is more … stable when money wage rigidity binds, providing an incentive for monetary policy makers to choose a low target for inflation …

, prompting them to raise markups and prices in anticipation of potentially higher future inflation. These findings establish a … connection between heightened uncertainty, higher core inflation, and increased profits. …

impact of trend inflation on price flexibility, and the relationship between announcement and implementation effects. This is … zero-inflation steady state. We show that a suitable calibration of the model has similar effects on macroeconomic … variables as standard versions of the menu cost model. It replicates the effect of trend inflation on the impulse response to …

of the New Keynesian Phillips Curve (NKPC) is that they fail to capture the extent of inflation inertia in the data. In …