De Walque, Gregory; Smets, Frank; Wouters, Rafael - In: CESifo economic studies : CESifo, a joint initiative of … 52 (2006) 1, pp. 153-176
Smets and Wouters (2003) find that at short- and medium-term horizons stochastic variations in the goods market mark-up are the most important source of inflation variability in the euro area. This article shows that an empirically plausible alternative interpretation is that the estimated price...
