shocks this model generates the empirically observed slow (inertial) and prolonged (persistent) reaction of the inflation … shocks mostly through a change in the long-run or inflation updating component of their pricing policies. With staggered … pricing policies there is a time lag before this is reflected in aggregate inflation …

-run relationship between inflation and output is positive in the Rotemberg model and negative in the Calvo model. ii) The log … inflation enlarges the determinacy region in the Rotemberg model, while it shrinks the determinacy region in the Calvo model. iv …) The responses of output and inflation to a positive technology shock are amplified by trend inflation in Calvo, while they …

We apply classical econometric method to characterize the dynamic behavior of the quarter-on-quarter inflation over the … inflation series and as well as for the consumer price inflation at representative product groups level, taking into account the … influence of structural breaks in the mean of inflation on the level of persistence. We find strong evidence for a break in the …