In this paper I use novel micro data underlying the Mexican CPI to establish stylized facts about prices in the Mexican economy. I then analyze the implications and consistency of the empirical results for the degree of monetary non-neutrality generated in both time and state-dependent pricing...

This paper presents a model of asymmetric (S,s) pricing. We investigate whether the asymmetry on micro level is carried over on macro level and what is the role of agent heterogeneity in the process. We look at two kinds of asymmetries: (i) asymmetric output responses monetary shocks and (ii)...

This paper investigates whether systematic monetary policy can affect output in a dynamic menu cost model which results in (S,s) price rules. It will be shown that monetary policy potentially can affect output, not only in the short run but also the long run average output. That is, even though...