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deviations of inflation or output from their respective targets or a monetary policy shock. The main contribution of this paper …
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of the shock to the eurozone which is our main trade partner. …
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Macroeconomic and microeconomic data paint conflicting pictures of price behavior. Macroeconomic data suggest that inflation is inertial. Microeconomic data indicate that firms change prices frequently. We formulate and estimate a model which resolves this apparent micro - macro conflict. Our...
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