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Understanding Inflation Dynamics : Where Do We Stand?

Dossche, Maarten - 2010

I summarize recent progress made in the literature on inflation dynamics. This has been a very productive area of … to inflation dynamics and the characteristics of the information set price-setters use for their price adjustment …

Persistent link: https://www.econbiz.de/10013137704

Coarse Pricing Policies

Stevens, Luminita - 2019

The muted volatility of inflation during the Great Recession and its aftermath has refocused attention on the … aggressively. I develop a theory of information-constrained price setting that generates coarse pricing endogenously, and …

Persistent link: https://www.econbiz.de/10012904541

Price Adjustment in the Euro Area in the Low-Inflation Period : Evidence from Consumer and Producer Micro Price Data

Gautier, Erwan; Karadi, Peter; Amann, Juergen; … - 2023

datasets collected in a period with relatively low and stable inflation. First, price changes are infrequent in the core … change is smaller, but nevertheless larger than inflation. Third, price setting is mildly state-dependent: the probability of … in aggregate inflation, which instead mainly reflected shifts in the average size of price changes. Consistent with …

Persistent link: https://www.econbiz.de/10014353273

Markups, Labor Market Inequality and the Nature of Work

Kaplan, Greg - 2020

We demonstrate the importance of distinguishing between the traditional use of labor for production, versus alternative uses of labor for overhead, marketing and other expansionary activities, for studying the distribution of both factor income and labor income. We use our framework to assess...

Persistent link: https://www.econbiz.de/10012841091

On the structural interpretation of the Smets-Wouters "risk premium" shock

Fisher, Jonas D. M. - 2014

This article shows that the "risk premium" shock in Smets and Wouters (2007) can be interpreted as a structural shock …

Persistent link: https://www.econbiz.de/10010418208

Collateral Crises

Gorton, Gary B. - 2013

-parties decays. A crisis occurs when a small shock then causes a large change in the information environment. Agents suddenly have …

Persistent link: https://www.econbiz.de/10013091811

Small and Large Price Changes and the Propagation of Monetary Shocks

Alvarez, Fernando - 2014

We document the presence of both small and large price changes in individual price records from the CPI in France and the US. After correcting for measurement error and cross-section heterogeneity, the size-distribution of price changes has a positive excess kurtosis. We propose an analytical...

Persistent link: https://www.econbiz.de/10013052222

Optimal Monetary Policy in a New Keynesian Model with Habits in Consumption

Leith, Campbell - 2012

While consumption habits have been utilised as a means of generating a hump shaped output response to monetary policy shocks in sticky-price New Keynesian economies, there is relatively little analysis of the impact of habits (particularly, external habits) on optimal policy. In this paper we...

Persistent link: https://www.econbiz.de/10013116941

Real Rigidities and Nominal Price Changes

Klenow, Peter J.; Willis, Jonathan L. - 2013

A large literature seeks to provide microfoundations of price setting for macro models. A challenge has been to develop a model in which monetary policy shocks have the highly persistent effects on real variables estimated by many studies. Nominal price stickiness has proved helpful but not...

Persistent link: https://www.econbiz.de/10014058855

Escaping unemployment traps

Acharya, Sushant; Bengui, Julien; Dogra, Keshav; Wee, … - 2017

We present a model in which temporary shocks can permanently scar the economy's productive capacity. Unemployed workers lose skill and are expensive to retrain, generating multiple steady state unemployment rates. Large temporary shocks push the economy into a liquidity trap, generating...

Persistent link: https://www.econbiz.de/10011754395