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D'Acunto, Francesco - 2017

time, which we use in a difference-in-differences strategy. Firms' frequency of price adjustment did not change around the …

Persistent link: https://www.econbiz.de/10012964908

The Micro-Macro Disconnect of Purchasing Power Parity

Bergin, Paul R. - 2010

This paper reconciles the persistence of aggregate real exchange rates with the faster adjustment of international … stylized facts regarding this puzzle. First, adjustment to purchasing power parity deviations in aggregated data is not just a … slower version of adjustment to the law of one price in microeconomic data, as arbitrage occurs in different markets, in …

Persistent link: https://www.econbiz.de/10013149574

Sticky Information Versus Sticky Prices : A Proposal to Replace the New Keynesian Phillips Curve

Mankiw, Nicholas Gregory; Reis, Ricardo - 2021

This paper examines a model of dynamic price adjustment based on the assumption that information disseminates slowly …

Persistent link: https://www.econbiz.de/10013245304

Sticky-Price Models of the Business Cycle : Specification and Stability

Ireland, Peter N. - 2022

which adjustment costs apply to the price level but not to the inflation rate. Formal hypothesis test detect instability in …

Persistent link: https://www.econbiz.de/10014163566

Sticky Prices, Inventories, and Market Power in Wholesale Gasoline Markets

Borenstein, Severin; Shepard, Andrea - 2010

We present and test an explanation for lags in the adjustment of wholesale gasoline prices to changes in crude oil … prices. Our simple model with costly adjustment of production and inventories implies that output prices will respond with a … power will choose a different price adjustment path than would perfectly competitive firms. We examine the responses of …

Persistent link: https://www.econbiz.de/10014112936

On the Relevance or Irrelevance of Public Financial Policy : Indexation,Price Rigidities and Optimal Monetary Policy

Stiglitz, Joseph E. - 2010

This paper is concerned with delineating conditions under which public financial policies have no real and/or price effects. In the absence of intergenerational distribution effects, public financial policy is irrelevant:an increase in government debt (whether indexed or not), an exchange of...

Persistent link: https://www.econbiz.de/10014119064

Price Rigidity and the Origins of Aggregate Fluctuations

Pasten, Ernesto - 2017

We document a novel role of heterogeneity in price rigidity: It strongly amplifies the capacity of idiosyncratic shocks to drive aggregate fluctuations. Heterogeneity in price rigidity also completely changes the identity of sectors from which fluctuations originate. We show these results both...

Persistent link: https://www.econbiz.de/10012948442

Microeconomic Heterogeneity and Macroeconomic Shocks

Kaplan, Greg - 2018

We analyze the role of household heterogeneity for the response of the macroeconomy to aggregate shocks. After summarizing how macroeconomists have incorporated household heterogeneity and market incompleteness in the study of economic fluctuations so far, we outline an emerging framework that...

Persistent link: https://www.econbiz.de/10012916186

Price Rigidities and Relative PPP

Blanco, Julio - 2018

We measure the proportion of real exchange rate movements accounted for by cross-country movements in relative reset prices (prices that changed since the previous period) using CPI microdata for five countries. Relative reset prices account for almost the totality of the real exchange rate...

Persistent link: https://www.econbiz.de/10012918069

Monetary Independence and Rollover Crises

Bianchi, Javier - 2018

This paper shows that the inability to use monetary policy for macroeconomic stabilization leaves a government more vulnerable to a rollover crisis. We study a sovereign default model with self-fulfilling rollover crises, foreign currency debt, and nominal rigidities. When the government lacks...

Persistent link: https://www.econbiz.de/10012906779