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 …

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 … intensive margin is the sole source of inflation changes in staggered time-dependent pricing models. We use micro data collected …

This paper analyzes the long-run determinants of inflation differentials in a monetary union. First, we aim at …some stylized facts relating the regional dispersion in headline inflation rates in the euro area as well as in the …-traded sector as the primary cause of price and inflation differentials, with shocks to productivity in the traded sector being …

currency misalignments are inefficient and lower world welfare. We find that optimal policy must target not only inflation and … targeting rule may involve only the CPI inflation rate. This result illustrates how examination of "instrument rules" may hide … model also gives a rationale for targeting CPI, rather than PPI, inflation …