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Inflation expectations of households and firms are central determinants in all dynamic macro models. Yet, empirical evidence suggests these decision makers form expectations in a way that deviates from the assumptions in these models: on average, inflation expectations are biased upwards, are...
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We document the presence of both small and large price changes in individual price records from the CPI in France and … the US. After correcting for measurement error and cross-section heterogeneity, the size-distribution of price changes has … the ratio of kurtosis to the frequency of price changes is a sufficient statistics for the real effects of monetary policy …
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We study the cyclical properties of sales, regular price changes and average prices paid by consumers ("effective …
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In most OECD countries, we cannot reject up to three breaks in the mean of inflation: one break in the late 1960's-early 1970's, one in the early-mid 1980's and another break in the early 1990's. These breaks tend to be associated more often to breaks in the mean of nominal variables than to the...
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