policy literature. The extent to which these firms adjust their prices to lagged inflation has been taken as fixed. We …

We analyze the microfoundations of the Phillips curve, a key relationship in general macroeconomics and models of … monetary policy in particular. The form in current widespread use includes both forward looking expected inflation and lagged … inflation. The presence of lagged inflation is necessary to generate predicted inflation persistence to match actual persistence …

based on optimising microfoundations and consistent with the data, especially observed persistence in inflation and output … discretionary policy maker. The model predicts inflation and output persistence comparable to that observed without reliance on rule …

policy literature and tend to match macroeconomic data well given their prediction of inflation persistence. The extent to … which firms index their prices to past inflation has been assumed constant. We explore the consequences of endogenising the … significance of lagged inflation in the Phillips curve, and actual persistence which depends on the latter. We find that if firms …

models consistent with macroeconomic data, especially persistence in inflation, and ii) the wealth of newly available … microeconomic data on price changing behaviour from the ECB’s Inflation Persistence Network, alongside earlier firm surveys for … “stickier†sectors. When calibrated to micro data the model predicts inflation persistence comparable to that in …

monetary policy literature. The extent to which these firms adjust their prices to lagged inflation has been taken as fixed. We …

We estimate the distribution of household-level inflation and show a strong and stable negative relationship between … income and inflation that reflects the differences in consumption bundles along the income distribution (2010 …–2012). Inflation decreases as education levels increase. It is especially high for blue-collar worker households and extraordinarily …

in the microdata with the degree of sluggishness in inflation adjustment to output changes at the macro level. © 2014 … terms of overtime labor; the resulting coefficient estimates are in accordance with theory and statistically significant for …

Abwärtsnominallohnrigidität selbst vom inflationären Umfeld abhängt und in Jahren mit niedriger Inflation sinkt. This paper examines the existence … nominal wage rigidity - under a constant degree of rigidity - are the higher, the lower the inflation rate is. For inflation … of the rigidity itself sinks during years of low inflation. …

volume," Microeconomic Foundations of Employment and Inflation Theory, a book that is often credited with pioneering the …, rather than built on, the Phelps volume's "microfoundations" approach. Whereas the contributors to the 1970 volume recognized …