rigidities impede policymakers' ability to control inflation. And third, we describe how alternative shock/rigidity combinations … monetary policymaking. First, we discuss why trimmed means provide the best measure of core inflation. Second, we outline how … create inflation's grease (whereby it improves economic efficiency by speeding adjustment) and sand effects (whereby it …

inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after … an expansionary shock to monetary policy. Of these features, the most important are staggered wage contracts of average …

inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after … an expansionary shock to monetary policy. Of these features, the most important are staggered wage contracts of average …