inflation declines, because nominal adjustments become less frequent, making short-run inflation less reactive to shocks …

Surprisingly it did not, or at least not directly. Using micro data on consumer prices and sectoral inflation rates … has altered the behaviour of retail price setting and/or inflation dynamics. We find no evidence that anything has changed … earlier patterns. On the contrary, we do find evidence of a decline in the persistence of the inflation process in the mid …

inflation target. In contrast, I show that the standard New Keynesian monetary model predicts that nominal interest rates should …

which induce smooth inflation also dampen the adjustment of wages in response to shocks. In the search and matching … Phillips curve is that inflation is not only driven by an output gap but also by an employment gap - a feature usually …

importance of wage bargaining above the firm level, the automatic system of index-linking wages to past inflation, the limited …