Nakamura, Emi; Steinsson, Jón - In: Annual Review of Economics 5 (2013) 1, pp. 133-163
We review recent evidence on price rigidity from the macroeconomics literature and discuss how this evidence is used to inform macroeconomic modeling. Sluggish price adjustment is a leading explanation for the large effects of demand shocks on output and, in particular, the effects of monetary...