This paper demonstrates that retail-level real rigidity is both quantitatively important and consistent with facts on retail pricing. Rich retailer scanner data from NielsenIQ reveals that 1) product demand is lower when prices for other goods in the same store are higher and 2) overall...

This paper builds a baseline two-country model of real and monetary transmission under optimal international price discrimination. Distributing traded goods to consumers requires nontradables; because of distributive trade, the price elasticity of export demand depends on the exchange rate....