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 …

(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 …

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 …

We use microdata to estimate the strength of price selection - a key metric for the effect of monetary policy on the …

We estimate the effects of monetary policy on price-setting behavior in administrative micro data underlying the German … producer price index. After expansionary monetary policy, the increase in the frequency of price change is economically small …, the average absolute size across all price changes falls, and the aggregate price level hardly adjusts as a result. These …

We develop a New Keynesian (NK) model with endogenous price setting frequency. Whether a firm updates its price in a … update the price when expected benefits outweigh expected cost and then resets the price optimally. As markups are … quantitative analysis shows that contrary to the standard NK model, the assumed price setting behaviour: is consistent with micro …