. Moreover, in response to aggregate shocks, aggregate price rigidity moves substantially, the response of inflation is dampened …

the traditional results on the impact of inflation. In particular, recent findings suggest that quantity-adjustment costs … may remove the linkage between output and inflation. We show that this is not the case when inflation is anticipated. On …

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 …

We present a new partial equilibrium theory of price adjustment, based on consumer loss aversion. In line with prospect … theory, the consumers' perceived utility losses from price increases are weighted more heavily than the perceived utility … an otherwise standard dynamic neoclassical model of monopolistic competition. The resulting theory of price adjustment is …

-firm synchronization is found supporting the theory of economies of scope in menu costs. The industry synchronization effects are found to …