This paper considers the macroeconomic effects of retailers' market concentration and buyer-size discounts on inflation … dynamics. During Japan's "lost decades," large retailers enhanced their market power, leading to increased exploitation of …. Calibrating to the Japanese economy during the lost decades, we find that despite a reduction in procurement cost, strengthened …

employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …