: (1) distribution expenses are large - they amount to over half of labor costs; (2) plants in the largest decile …, distribution costs as a share of sales declined by one third. We develop a model of heterogeneous manufacturing firms that rely on … share. In combination with the model, these trends suggest largescale decreases in both variable and fixed costs of …

This paper proposes a new effect of firing costs on firms'' behavior that builds from firms'' demand for liquidity … firing costs reduces the value of labor''s liquidity service, which affects firms'' demand for liquidity, and thus, firms …'' demand for inputs. In addition to this negative effect at the creation margin, I also show that firing costs imply relatively …

This paper reviews how recent studies of banking crises differ with regard to the dating, length, and costs of the … crisis costs. Cross-sectional evidence does not show that the length of a crisis is a significant contributor to its …

This paper investigates the response of consumer price inflation to changes in domestic fuel prices, looking at the … retail fuel prices to estimate the pass-through to inflation significantly underestimate it. Third, while the purchasing … findings stand out. First, the response of inflation to gasoline price shocks is smaller, but more persistent and broad …

currency by keeping inflation low and steady. This paper provides evidence that monetary policy tightening aimed at maintaining … low and stable inflation could at the same time reduce consumption inequality over a 12-18 month horizon, commonly … benefit mainly from lower inflation. By contrast, the real consumption of individuals at higher ends of the consumption …

Determining the magnitude and speed of the exchange rate passthrough (ERPT) to inflation has been of paramount …, sizable and fast, with 50 percent of the exchange rate variations passing through to prices in less than six months. Policy …-makers should continue to pursue low and stable inflation and develop a strong track record of prudent macroeconomic policies for …

nominal exchange rate flexibility may induce adjustments to the real exchange rate through domestic prices. We find that …