Pou, Mª Ángeles Caraballo; Dabús, Carlos - Centro de Estudios Andaluces, Government of Andalusia - 2005
The menu costs model developed by Ball and Mankiw (BM)(1994,1995) predicts that inflation is positively related to the skewness of price changes distribution. We test this prediction in different inflationary contexts: Spain (1975-2002) and Argentina (1960-1989). We find a positive...