-dependent pricing model it takes more time to dampen inflation dynamics after a monetary policy relative to a time-dependent counterpart …

A model of firm-level optimal pricing under stochastic inflation and fixed costs of adjusting prices is solved and … characterized. In this model, inflation alternates stochastically between some positive rate g and zero inflation. We find that a … different (s,S) band for each state of the world, with the zero-inflation band wholly contained in the positive-inflation band …

. Key to this finding is an “envelope” property: at zero inflation, a marginal increase in the rate of inflation has no …

conditions, a policy of zero inflation is optimal both in the long run and in response to aggregate shocks. Key to this finding … is an "envelope" property: at zero inflation, a marginal increase in the rate of inflation has no effect on firms … remains very close to strict inflation targeting. …

inflation should differ between inflation and deflation episodes, using data for Japan and Hong Kong. We use a random cross … both the inflation and deflation periods, and the parameter on the second moment changes sign in the deflation period, as … the theory predicts. Keywords: inflation, deflation, menu costs, Hong Kong, Japan. …

We test the menu cost model of Ball and Mankiw (1994, 1995) on data from the inflation and deflation periods in Japan … during both inflation and deflation, is strongly supported. The data are less clear on, but does not reject, the hypothesis … that the parameter on the standard deviation changes sign between inflation and deflation periods. …

Relying on the backward-looking Phillips curve, we estimate the level of inflation that erodes price rigidity and … varying threshold inflation levels. Studying six advanced countries over the 1970-2012 period, our results show that both the … slope of the Phillips curve and the threshold trend inflation that erodes price rigidity are time varying. These …

Relying on the backward-looking Phillips curve; we estimate the level of inflation that erodes price rigidity and … varying threshold inflation levels. Studying six advanced countries over the 1970-2012 period; our results show that both the … slope of the Phillips curve and the threshold; trend inflation that erodes price rigidity are time varying. These …