The Producer Price Index (PPI) for the United States suggests that semiconductor prices have barely been falling in … improve at a rapid pace. Over the course of the 2000s, the MPU prices posted by Intel, the dominant producer of MPUs, became … measure of price change since then. MPU prices fell rapidly through 2004 on every price measure we present, with the PPI …

This paper examines two candidate hypotheses explaining the stabilization of U.S. inflation since the 1970s and 1980s …. The first explanation credits the stabilization of inflation expectations, and assumes those expectations have a strong … positive causal effect on actual subsequent inflation, while the second explanation credits the disappearance of such a strong …

The period of extraordinary volatility in euro area headline inflation starting in 2007 raised the question whether … from different models. The combination methods are evaluated for HICP headline inflation and HICP excluding food and energy … volatility in inflation. Overall, we find that, first, forecast combination helps hedge against bad forecast performance and …

-period prices, inflation is therefore less sensitive to macroeconomic conditions. To distinguish between our two hypotheses, we … hypotheses. One is that prices at the microeconomic level are stickier than they used to be---in the context of the canonical … Calvo model, firms are adjusting prices less often. The other is that the expectations of firms and households about future …

The diminished sensitivity of inflation to changes in resource utilization that has been observed in many advanced … examine this "globalization" hypothesis using both aggregate U.S. data on measures of inflation and economic slack and a rich … panel data set containing producer prices, wages, output, and employment at a narrowly defined industry level. Our results …

Building on the results in Nalewaik (FEDS 2015-93), this work models wage growth and core PCE price inflation as regime … price inflation that becomes much larger after labor markets tighten beyond a certain point. The results are informative for … assessing the likelihood and risks of meeting certain inflation targets on a sustained basis …

dispersion reduces welfare by creating mismatch between posted prices and money balances. Inflation exacerbates this welfare loss … simultaneous search or any heterogeneity in preferences, production costs, or search technologies. A distribution of money holdings … among buyers makes sellers indifferent across a set of posted prices, leading to a non-degenerate price distribution. This …

inflation and deflationary biases in inflation expectations. In a model with an occasionally binding zero-lower-bound constraint …, we show that an inflation bias as well as a deflationary bias exist as a steady-state outcome. We assess the predictions … of this model using unique individual-level inflation expectations data across nine countries that allow for a direct …

patterns in economic activity and inflation following oil price shocks in the euro area. In the 'normal regime', oil price … shocks are followed by sizeable and sustained macroeconomic fluctuations, with inflation and economic activity moving in the … same direction as the oil price. The responses of inflation expectations and wage growth point to second-round effects as a …