This paper shows how endogeneous inflation inertia is generated by a simple modificaton of the quadratic adjustment … cost structure faced by economic agents. We derive the pertinent inflation relationships based on purely nominal rigidities …

output and inflation across a population of firms is studied. The only form of heterogeneity is confined to the probability … of output and inflation depend crucially on the proportion of firms that are allowed to change their prices. We test this …-cyclical correlation between the skewness of inflation and aggregates, but the relation with output is less sure. Our results can be …

rate policy helps to reconcile the inflation and output persistence with empirical observations for the US economy. We show … findings for the inflation inertia in a model with capital adjustment costs and variable capacity utilization, the output …

I present empirical results on the contribution of three key drivers of inflation in Denmark: an inflation trend … anchored by inflation expectations; the Danish business cycle; and an energy price cycle. All three drivers contribute … significantly to the development of inflation and explain most of the variation in the last 40 years. The results are based on a …

what I call a micro Phillips curve, i.e. a product-specific relation between inflation and economic activity conditional on … inflation expectations. I find two opposing effects of competition on the slope of the micro Phillips curve. On the one hand … weak competition. In line with the theory, prices of products, that face very strong competition, are also less likely to …