dynamics of inflation implied by macroeconomic data, the model needs to assume an average duration of price contracts which is … the slope of the New Keynesian Phillips curve given a frequency of price adjustment. Conversely, given an estimate of this … slope, my model implies shorter price durations than the standard model. For a plausible calibration and for different slope …

We present a sticky-price model incorporating heterogeneous firms and systematic firm-level productivity trends … canonical sticky price models featuring homogenous firms: (1) the optimal steady-state inflation rate generically differs from …