aggregate inflation and the higher-order moments of the distribution of relative price changes. Our empirical findings confirm … explanatory variable for the inflation rate. Further, the skewness measure also helps to explain shifts in the Phillips curve …

In recent macroeconomic theory, relative price variability (RPV) generates the central distortions of inflation. This … paper provides first evidence on the empirical relation between inflation and RPV in the euro area focusing on threshold … effects of inflation. We find that expected inflation significantly increases RPV if inflation is either very low (below -1 …