The Producer Price Index (PPI) for the United States suggests that semiconductor prices have barely been falling in … improve at a rapid pace. Over the course of the 2000s, the MPU prices posted by Intel, the dominant producer of MPUs, became … measure of price change since then. MPU prices fell rapidly through 2004 on every price measure we present, with the PPI …

Price-setting models with monopolistic competition and costs of changing prices exhibit coordination failure: in … response to a monetary policy shock, individual agents lack incentives to change prices even when it would be Pareto … benchmark equilibrium, prices are upwards-flexible but downwards-sticky. These last results suggest that the dynamic behavior of …