Bils, Mark; Klenow, Pete; Malin, Benjamin - Stanford Institute for Economic Policy Research … - 2009
meaningful real effects are time-dependent pricing and strategic complementarities. These mechanisms have telltale implications … persistence and stability of reset price inflation. This discrepancy is exacerbated by adding strategic complementarities, even … under state-dependent pricing. A state-dependent model with no strategic complementarities aligns most closely with the data. …