the link between external rebalancing and relative price adjustment. We find that neglect of inputs distorts … price through several opposing channels. (1) Mismeasured imported inputs exaggerate economic openness and understate the … price response to rebalancing. (2) Mismeasured domestic inputs increase cross-sectoral asymmetry in openness, leading to an …

We model retail price stickiness as the result of errors due to costly decision-making. Under our assumed cost function … for the precision of choice, the timing of price adjustments and the prices firms set are both logit random variables …. Errors in the prices firms set help explain micro "puzzles" relating to the sizes of price changes, the behavior of …

unexpected gas price supply shocks on HICP inflation in the euro area and its four largest economies. In comparison to oil price … shocks, gas price shocks have approximately one-third smaller pass-through to headline inflation. Country-specific results … indicate gas price increases matter more for German, Spanish and Italian inflation than for French inflation, hinging on the …

and price dynamics. Several aspects are relevant. From a monetary policy point of view, increasing the degree of … competition in the distributive trades sector may have effects not only on price levels, but also on price dynamics, via a … reduction in mark-ups, an increase in price fl exibility and a greater and more rapid pass-through of changes in costs to prices …

well as price level (index) differences between Luxembourg and its neighbouring countries. Cross-border commuters take …