with firms setting pricing policies instead of price levels. In response to permanent or highly persistent monetary policy …

This paper presents a model of staggered price setting that allows for a flexible distribution of the durations of the … prices underlying aggregate price behavior, and estimates it with U.S. data. When tested against an unrestricted version of … distribution of price durations—with clusters on the first, fourth, and eighth quarter after prices are set—easily passes the same …

Empirical evidence suggests that goods are highly heterogeneous with respect to the degree of price rigidity. We … stability under adaptive learning for interest rate rules that respond to inflation measures differing in their degree of price … sector with low price stickiness are more prone to generate macroeconomic instability than rules that respond exclusively to …

high degree of price stickiness, we show that not much equity diversification is required to replicate the complete …

cycles and monetary policy in a sticky-price, dynamic general equilibrium model of a small open economy. We find from the … interest rate rule that targets inflation in the sticky-price sector of the economy …

Introducing habit formation into an open economy macroeconomic model with price stickiness, we examine the …