price inflation." Reset price inflation is the rate of change of all desired prices (including for goods that have not …

Models with sticky prices predict that monetary policy changes will affect relative prices and relative quantities in … the short run because some prices are more flexible than others. In U.S. micro data, the degree of price stickiness … not. Short-run responses of relative prices have the wrong sign. And monetary policy shocks seem to have persistent …

sizable movements in relative prices of substitute products. When we impose a significant degree of real rigidity, fitting the …

In the U.S. and Europe, prices change somewhere between every six months and once a year. Yet nominal macro shocks seem …