inflation measures that typically do not incorporate frequently changing promotional prices. …

real GDP, of the output gap, and of the inflation rate. The primary results of the paper are based on a small three …-equation macro model that includes equations for the inflation rate, the nominal Federal Funds rate, and the change in the output gap … the model%u2019s inflation equation, and the error term in the output gap equation that is interpreted as representing %u …

indices and actual prices paid by consumers. We demonstrate that our methodology improves inflation measurement without …

The debate over including asset prices in the construction of an inflation statistic has attracted renewed attention in … inflation at the retail level. In this paper, we take an alternative, longer-term perspective on the issue and argue that the … exclusion of asset prices introduces an 'excluded goods bias' in the computation of the inflation statistic that is of interest …

Statistical offices try to match item models when measuring inflation between two periods. However, for product areas …

This paper shows that conventional measures of cost-of-living inflation, based on static models of consumption, suffer …

-price changes, and an index of equiproportional changes in all inflation rates, that we label "pure" inflation. The paper estimates … changes to fundamental economic shocks. We use the estimates of the pure inflation and aggregate relative-price components to … answer two questions. First, what share of the variability of inflation is associated with each component, and how are they …

A growing theoretical literature argues that aggregate price flexibility and the inflation-output tradeoff faced by … constant inflation-output tradeoff in favor of a slope that increases with microeconomic volatility. In contrast, there is no … evidence that the inflation-output tradeoff varies with aggregate volatility or the business cycle more generally. Furthermore …