generate substantial inflation. Such a shock induces an equilibrium decline in the relative price of services. If price … increase in goods prices, resulting in, on net, little inflation. If prices in the services sector are downwardly rigid …, however, this takes place mostly through an increase in goods prices, resulting in inflation. To illustrate the relevance of …

fraction of price changes increases with inflation. In addition, in the presence of strategic complementarities, they predict …

resulting Phillips curve involves lagged inflation and lagged expectations. It nests the Calvo NKPC as a limiting case in the … inflation always has negative coefficients, thereby making it impossible to interpret inflation persistence as intrinsic. The … numerical evaluation shows that the increasing hazard function leads to hump-shaped impulse responses of inflation to monetary …

inflation and real rigidity. Analytically, I find that important dynamics in the NKPC are canceled out due to the restrictive … dynamic structure introduced by the non-constant hazards is also quantitatively important to the inflation dynamics …. Incorporation of real rigidity and trend inflation strengthen this effect even further. With reasonable parameter values, the model …

.I derive a generalized NKPC in an optinizing model with the non- constant hazard function and trend inflation. Memory emerges … in the resulting Phillips curve through the presence of lagged inflation and lagged expectations. It nests the Calvo NKPC …-hazard assumption. Furthermore, I find lagged inflation always has negative coefficients, thereby making it impossible to interpret …

This paper examines the question of how conventional understanding of inflation relates to stickiness. Several results …