This paper compares sticky-price and sticky-information model under a more general staggering price-setting scheme … that, without strategic complementarity in the price-setting, two models generate similar inflation dynamics. The … distribution of price durations dominates the shape of impulse response in both models. Furthermore, with strategic complementarity …

Recent New Keynesian models of macroeconomy view nominal cost rigidities, rather than nominal price rigidities, as the … for the U.S. This paper applies Kryvtsov and Midrigan's model to the case of Canada. The model predicts that if costs of …

Macroeconomists have traditionally ignored the behavior of temporary price markdowns ("sales") by retailers. Although … sales are common in the micro price data, they are assumed to be unrelated to macroeconomic phenomena and generally filtered … out. We challenge this view. First, using the 1996 - 2012 data set of the U.K. CPI monthly price quotes, we document a …

(above) the average. Using detailed micro-level consumer price data for the United Kingdom, the United States and Canada, we … for around 36% of inflation variance in the United Kingdom and the United States, and 28% in Canada. Price selection is …We propose a simple, model-free way to measure price selection and its impact on inflation. Price selection exists when …

We study how the interaction of market power and nominal price rigidity influences inflation dynamics. We formulate a … the pass-through of idiosyncratic costs is incomplete at 70% and independent of the degree of sector-price-stickiness. The … pass-through of common costs declines with price stickiness, from nearly complete in flexible-price sectors to below 70% in …

dynamics: The flexibility of the price level increases after large shocks due to an endogenous rise in the frequency of price … faced with total factor productivity shocks, an efficient disturbance, the optimal policy commits to strict price stability …