and Galí (2006, 2008) New-Keynesian model of inflation and unemployment, where labor market frictions due to costs of … alternative values of hiring costs as a percentage of GDP. Under low hiring costs - a typical part of the U.S. calibration - for … policy rules based on current period inflation and unemployment our results are similar to those of Bullard and Mitra (2002 …

price adjustments even in a period of a runaway inflation, when 85 percent of the prices change every month. … rigidity during a period of a runaway inflation, when the annual inflation rate was in the range of 60%-430%. Surprisingly, we … find that 0-ending prices are less likely to adjust, and when they do adjust, the average adjustments are larger. These …

anticipation of a future cost shock may only occur if prices are sufficiently flexible. We show analytically that this result holds … ; Optimal Monetary Policy ; Sticky Prices ; Welfare Analysis …

.The cost channel makes monetary policy less effective in combatting inflation, but it is shown that the optimal response to the …

offer two types of evidence of the costs of breach. First, we document a case in 1930 when the Coca-Cola Company chose to …

I compare direct issuance costs of inflation-linked versus nominal government debt (the liquidity premium versus the … maturities (5-10 years) and inflation-linked debt at long maturities (20- years). Issuance costs are approximately equal for … inflation risk premium, respectively) in developed countries. On average, it is cheaper to issue nominal debt at medium …

The literature on costs of price adjustment has long argued that changing prices is a complex and costly process. In … they can improve the efficiency of the "pricing production" activities by both reducing the costs of adjusting prices, and … fact, some authors have suggested that we should think of firms' price-setting activities as "producing" prices, similar to …