Inflation equals the product of two terms: an extensive margin (the fraction of items with price changes) and an … intensive margin (the average size of those price changes). The variance of inflation over time can be decomposed into … by the U.S. Bureau of Labor Statistics to decompose the variance of consumer price inflation from 1988 through 2003. We …

for the persistence and volatility of "reset price inflation." Reset price inflation is the rate of change of all desired … construct an empirical measure of reset price inflation. We find that time-dependent models imply unrealistically high … persistence and stability of reset price inflation. This discrepancy is exacerbated by adding strategic complementarities, even …

between notional and effective demands, and using it to explain price and quantity adjustments in conditions of unemployment …

We study the implications of increased price flexibility on output volatility. In a simple DSGE model, we show … demand shocks if monetary policy does not respond strongly to inflation. More flexible prices often reduce welfare, even …

firms. Unconditionally, the most flexible-price firms have a 19% higher long-term leverage ratio than the most sticky-price … firms, controlling for known determinants of capital structure. Sticky-price firms increased leverage more than flexible-price … time, which we use in a difference-in-differences strategy. Firms' frequency of price adjustment did not change around the …

between prices and costs and find sharp evidence of state dependence in the probability of reference price changes and in the …

wholesale price index, which emerge from a model in which German prices are sticky. This stickiness is due to price adjustment … like those which appear to be typical in Germany …

rate. Multiple margins of adjustment (frequency of price changes, direction of price changes, size of price changes, exit … our dataset to show that degree of competition, stickiness of prices, synchronization of price changes, reputation of … sellers, and returns to search effort are important determinants of pass-through and speed of price adjustment for …

Multi-sector sticky price models have surprising implications when durable goods have flexible prices. While in actual … flexible price industry for which the comovement problem is relevant. The underlying reason for the comovement problem is the …

The menu-cost interpretation of sticky prices implies that the probability of a price change should depend on the past … history of prices and fundamentals only through the gap between the current price and the frictionless price. We find that … menu-cost model as a literal description of these firms' behavior, arguing instead that price stickiness arises from …