Recent monetary search and Calvo-type models predict that the relationship between inflation and price dispersion is U …-shaped, implying an optimal rate of inflation above zero. Moreover, monetary search models emphasize a critical dependence of the real … effects of inflation on sellers’ market power, whereas Calvotype models suggest that the degree of price rigidity …

to re-examine the relationship between price dispersion and inflation. Although existing evidence is mixed, we find …-specific inflation on the other. We also find evidence that dispersion is initially decreasing in anticipated aggregate inflation but is …

of pricing behavior. The effect of market structure on persistence of inflation results from two conflicting forces … the frequency of price changes depends negatively on the price dispersion and positively on the product-specific inflation …

of pricing behavior. The effect of market structure on persistence of inflation results from two conflicting forces … the frequency of price changes depends negatively on the price dispersion and positively on the product-specific inflation …

This study evaluates the role market competition plays in determining inflation based on sector-level data from OECD … countries. In theory, trade openness can affect inflation through changes in market competitiveness and productivity … of market competition. This study shows that inflation decreases with greater market competitiveness even after …

determination of inflation dynamics. The model is characterized by local interactions of heterogeneous firms and households in the … relative prices but also on firm size. We show that our model is able to generate realistic inflation dynamics, as well as a … inflation stemming from a tight labor market only holds when markets are competitive and efficient. Finally, we study the …

The sensitivity of inflation to domestic slack has declined in developed countries since the mid-1980s. This article … domestic inflation reacting less to real activity fluctuations …