inflation is inertial. Microeconomic data indicate that firms change prices frequently. We formulate and estimate a model which … resolves this apparent micro - macro conflict. Our model is consistent with post-war U.S. evidence on inflation inertia even …

There is no consensus about the causes of the reduction in business cycle volatility seen in many major economies over … stability has been fostered by improved monetary policy and by associated changes in the behaviour of inflation, which has … itself led to a reduction in the volatility of economic shocks. Our projections suggest that a number of major economies …