Macroeconomists have traditionally ignored the behavior of temporary price markdowns ("sales") by retailers. Although … sales are common in the micro price data, they are assumed to be unrelated to macroeconomic phenomena and generally filtered … out. We challenge this view. First, using the 1996 - 2012 data set of the U.K. CPI monthly price quotes, we document a …

Standard theories of price adjustment are based on the problem of a single-product firm, and therefore they may not be … well suited to analyze price dynamics in the economy with multiproduct firms. To guide new theory, we study a unique … retail store synchronizes its regular price changes around occasional "peak" days when, once or twice a month, it reprices …

, arbitrary horizon. We investigate the role of that horizon in the price dynamics of an asset in a Lucas tree model. We then … even a modest share of long-horizon forecasters exhibit convergence towards the fundamental price. Longer-horizon forecasts …

We propose a simple, model-free way to measure price selection and its impact on inflation. Price selection exists when … (above) the average. Using detailed micro-level consumer price data for the United Kingdom, the United States and Canada, we … find robust evidence of strong price selection across goods and services. At a disaggregate level, price selection accounts …

leading to substantial heterogeneity of information across price-setters. This paper develops a quantitative general … signals. Price changes of firms that update information infrequently are synchronized with market signals. This leads to an …

Recent New Keynesian models of macroeconomy view nominal cost rigidities, rather than nominal price rigidities, as the …