-kinked demand schedule for goods produced by firms. Our model can jointly account for the modest decline in inflation during the … Great Recession and the surge in inflation post-COVID-19. Because our model implies a stronger transmission of shocks when … inflation is high, it generates conditional heteroskedasticity in inflation and inflation risk. Hence, our model can generate …

We study how within-store price variation changes with inflation, and whether households exploit it to attenuate the … inflation burden. We use micro price data for food products sold by 91 large multi-channel retailers in 10 countries between … discounts grew at a much lower average rate than regular prices, helping to mitigate the inflation burden. By contrast …

We use Canadian home scanner data to study household food inflation rates during periods of low and high inflation. We … find that during the post-pandemic surge in inflation, the actual inflation rates experienced by different households … varied more widely. Low-income households faced higher inflation than high-income households. We find that during the …

We examine the relative ability of simple inflation targeting (IT) and price level targeting (PLT) monetary policy … rules to minimize both inflation variability and business cycle fluctuations in Canada for shocks that have important … persistent cost-push pressures in the economy leading to a significant deterioration in the inflation - output gap trade …

expectation formation and the behaviour of macroeconomic agents. Inflation expectations, in particular, have received a great deal … be used to extract useful measures of inflation persistence. This paper presents a new measure of U.S. inflation … persistence from the point of view of a professional forecaster, referred to as perceived inflation persistence. It is built via …

, starting with the hypothesis that there is sluggishness in inflation and real GDP growth forecasts. Using individual-level data … is present in about 40% of inflation forecasts and in 60% of real GDP growth forecasts. The estimates of sluggishness are …

business cycles. These models predominantly assume that non-reoptimized prices are indexed to lagged or average inflation. The … degree of price rigidity and the level of trend inflation in the data-generating model, we find that the estimated indexation … bias can be substantial, ranging up to 12 quarters in some cases. -- Inflation and prices ; Economic models ; Econometric …