This paper provides empirical evidence on the degree of price rigidity and price flexibility in Denmark. Our data relies on unpublished data from Statistics Denmark on the Danish CPI. The dataset covers the period 1997-2005 and contains around 2.7 million monthly price records. The paper reveals...

The impact on central macroeconomic variables from changes in the monetary-policy regime in the OECD countries in the period 1970-2005 is estimated using the difference-in-difference method. We find that both shifts to a fixed-exchange-rate policy and to inflation targeting have led to a decline...

The present paper offers a careful description of empirical identification of possible multiple changes in regime. We apply recently developed tools designed to select between regime-switching models among a broad class of linear and nonlinear regression models and provide a discussion of the...