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 …In macroeconomic models, the level of price dispersion - which is typically approximated through its relationship with …

The conventional wisdom that inflation expectations respond to the level of the price of oil (or the price of gasoline … price shocks may indeed drive one-year household inflation expectations. The model shows that there have been several such … episodes since 1990. In particular, the rise in household inflation expectations between 2009 and 2013 is almost entirely …