Elsewhere, menu costs have been shown to result in more inflation persistence than contracting costs in the presence of real rigidities. This note demonstrates that the reverse is true if the average contract length is endogenous, for plausible parameter values

A common practice in studies using inflation forecasts is to approximate fixed-horizon forecasts with fixed-event ones. Here we show that this may be problematic. In a panel of US inflation forecast data that allows us to compare the two, the approximation results in a mean absolute...