We test the menu cost model of Ball and Mankiw (1994, 1995) on data from the inflation and deflation periods in Japan … during both inflation and deflation, is strongly supported. The data are less clear on, but does not reject, the hypothesis … that the parameter on the standard deviation changes sign between inflation and deflation periods. …

Relying on the backward-looking Phillips curve, we estimate the level of inflation that erodes price rigidity and … varying threshold inflation levels. Studying six advanced countries over the 1970-2012 period, our results show that both the … slope of the Phillips curve and the threshold trend inflation that erodes price rigidity are time varying. These …

Relying on the backward-looking Phillips curve; we estimate the level of inflation that erodes price rigidity and … varying threshold inflation levels. Studying six advanced countries over the 1970-2012 period; our results show that both the … slope of the Phillips curve and the threshold; trend inflation that erodes price rigidity are time varying. These …

adjustments similar to that observed in microeconomic data, both for low and high inflation. Our setup is based on one fundamental …, and because it implies a large fall in the standard deviation of price adjustments as trend inflation increases. Even …-behaved when we change the steady state inflation rate, matching the data at least as well as Golosov and Lucas' model …

This paper investigates the welfare effects of inflation in economies with search frictions and menu costs. We first … condition under which price stability is optimal and a condition under which positive inflation is desirable. We relate these … inflation rate is negative for all our numerical examples. A deviation from the Friedman rule can be optimal depending on the …

to re-examine the relationship between price dispersion and inflation. Although existing evidence is mixed, we find …-specific inflation on the other. We also find evidence that dispersion is initially decreasing in anticipated aggregate inflation but is …

This paper studies an (S, s) pricing model from the perspective of inflation and price competition in search markets. I … technologies are more efficient, price inflation is counter-intuitively, more likely to increase monopoly power of firms and to …

realistic parameter values, the model generates a blip in inflation of the same magnitude observed in the data …

This paper discusses four potential sources of lag dynamics in inflation: non-rational behavior, staggered contracting …, frictions on price adjustment, and shifts in the long-run inflation anchor of agent expectations (the perceived inflation target …). Expressions for inflation dynamics from structural models which admit these different sources of lag dynamics are contrasted …