Is inflation (still) a global phenomenon? We study the international co-movement of inflation based on a dynamic factor model and in a sample spanning up to 56 countries during the 1960-2023 period. Over the entire period, a first global factor explains approximately 58% of the variation in...

We introduce Armington's (1969) notion of "origin differentiation" into a micro-founded model of pricing to market and examine how this affects the joint dynamics of prices and quantities in an international real business cycle framework. We find that the model, when calibrated using parameters...

In this paper, we examine the extent to which market structure and the way in which it affects pricing decisions of profit-maximizing firms can explain incomplete exchange rate pass- through. To this purpose, we evaluate how pass-through rates vary across trade partners and sectors depending on...