Auclert, Adrien; Rigato, Rodolfo D.; Rognlie, Matthew; … - National Bureau of Economic Research - 2022
We show that, in a broad class of menu cost models, the dynamics of aggregate inflation in response to arbitrary shocks to aggregate costs are nearly the same as in Calvo models with suitably chosen Calvo adjustment frequencies. We first prove that the canonical menu cost model is first-order...