of price adjustment, informational frictions, etc. - are an important factor for nominal price rigidity at the micro … consistent with New Keynesian macroeconomic models in which firms have heterogeneous price stickiness …

We propose a simple framework to assess the costs of nominal price adjustment using stock market returns. We document … array of checks. These results suggest that menu costs---broadly defined to include physical costs of price adjustment …, informational frictions, etc.---are an important factor for nominal price rigidity. We also show that our empirical results …

We propose a simple framework to assess the costs of nominal price adjustment using stock market returns. We document … array of checks. These results suggest that menu costs---broadly defined to include physical costs of price adjustment …, informational frictions, etc.---are an important factor for nominal price rigidity. We also show that our empirical results …

past price change to be informative of future price change and act on this belief, it will be true and trading on this …