Jean Imbs; Eric Jondeau; Florian Pelgrin - Institut für Schweizerisches Bankwesen <Zürich> - 2007
marginal costs, which should therefore be the driving force to observed inflation dynamics. This is not always the case in … underestimating the importance of (aggregate) marginal costs for (aggregate) inflation. We provide intuition for the direction of … these biases, and verify them in French data with information on prices and marginal costs at the industry level. We show …