Sticky price models based on menu costs predict that countries with high trend inflation should have (i) smaller impact … effects of demand shocks on output and (ii) less persistent output fluctuations, relative to low-trend inflation countries …. These predictions are tested, controlling for changes in trend inflation, using a country-specific approach. The results do …

monetary policy reaction function of central banks during the Coronavirus Disease 2019 (COVID-19). Since inflation is mostly …