%) and fairly high (7%) inflation. Our results indicate that firms strongly react to inflation in the timing of their price … adjustment: hazard of price changes is increasing with time and becomes steeper at higher inflation rates. However, we find … little evidence that the amount by which they change the price responds to the inflation rate. …

to inflation explains only a tiny fraction of the variation in nonzero nominal price changes, (b) stores whose last … variability is not related to inflation. (Copyright: Elsevier) …

inflation and a permanent reduction in the level of unemployment. In short, we derive a microfounded long-run downward …

inflation - is a central determinant of welfare, the cost of business cycles, the optimal rate of inflation, and the tradeoff … between inflation and output stability. While the comovement of price dispersion and inflation implied by standard models is … the data, the comovement of price dispersion and inflation turns positive. Nevertheless, I show that a wide variety of …

stronger bargaining position when they try to prevent a cut in money wages. If inflation is so low that some money wages have … to be cut, workers stronger bargaining position requires higher unemployment in equilibrium. However, inflation is more … stable when money wage rigidity binds, providing an incentive for monetary policy makers to choose a low target for inflation …

inflation should differ between inflation and deflation episodes, using data for Japan and Hong Kong. We use a random cross … both the inflation and deflation periods, and the parameter on the second moment changes sign in the deflation period, as … the theory predicts. Keywords: inflation, deflation, menu costs, Hong Kong, Japan. …

changes does not change much with inflation and does not react much to aggregate shocks; (vi) changes in inflation are mostly … consistent with the predictions of a menu cost model in a low inflation environment where idiosyncratic shocks are a more …

The failure to predict the surge in inflation in 2021 raises questions about whether we are better equipped to … anticipate a future decline in inflation. What tools do we intend to use for predicting the trajectory of inflation? Are we still … primarily relying on survey data regarding inflation expectations, and are we still employing a Calvo-type structure to model …

generate substantial inflation. Such a shock induces an equilibrium decline in the relative price of services. If price … increase in goods prices, resulting in, on net, little inflation. If prices in the services sector are downwardly rigid …, however, this takes place mostly through an increase in goods prices, resulting in inflation. To illustrate the relevance of …

synchronized within rather than across stores. Time variations in inflation can be attributed mainly to variations in the frequency …