Policymakers concerned about rapid swings in commodity prices seek economic guidance about causal factors and future …

substantial fraction of the cyclical variation in output and is consistent with the observed inertia in inflation. This is true … even though firms in the model reoptimize prices on average once every 1.8 quarters. The key feature of our model … traded in economy-wide rental markets, we find that firms reoptimize their prices on average once every 9 quarters. We argue …

model does a good job of accounting for the joint behavior of labor and goods markets, as well as inflation, during the … capital played critical roles in accounting for the small size of the drop in inflation that occurred during the Great …