I document the frequency and size of price adjustments using thirty years of monthly data covering both high- and low-inflation … frequency of price changes is more important for the variation in inflation than is the magnitude of price changes. When … inflation is low and stable the magnitude of the price changes is more important. Monetary policy analysis assuming an exogenous …

The existence of nominal rigidities and inflation differentials between countries offers two of the main rationales for … an inflation buffer in a monetary union where monetary policy is oriented towards an area-wide inflation objective … differences as regards prices and wages. Price setting may have become more flexible and there is no evidence for any especially …

In this paper, we examine the extent to which monetary policy should respond to movements in sectoral inflation rates … price index (CPI). We calibrate the model for each sector using the UK CPI microdata. We find that a policy rule that allows … for different responses to inflation in different sectors outperforms a rule which just targets aggregate CPI, as does a …

for the persistence and volatility of "reset price inflation." Reset price inflation is the rate of change of all desired … construct an empirical measure of reset price inflation. We find that time-dependent models imply unrealistically high … persistence and stability of reset price inflation. This discrepancy is exacerbated by adding strategic complementarities, even …

2010-2019, we document new findings on consumer price rigidity in the euro area: (i) each month on average 12.3% of prices … change, which compares with 19.3% in the United States; when we exclude price changes due to sales, however, the proportion … of prices adjusted each month is 8.5% in the euro area versus 10% in the United States; (ii) differences in price …

Inflation equals the product of two terms: an extensive margin (the fraction of items with price changes) and an … intensive margin (the average size of those price changes). The variance of inflation over time can be decomposed into … by the U.S. Bureau of Labor Statistics to decompose the variance of consumer price inflation from 1988 through 2003. We …