The menu costs model developed by Ball and Mankiw (BM)(1994,1995) predicts that inflation is positively related to the skewness of price changes distribution. We test this prediction in different inflationary contexts: Spain (1975-2002) and Argentina (1960-1989). We find a positive...

This paper analyses the effects of supply shocks on the Spanish inflation rate. The methodology applied is based on Ball and Mankiw (1995). These authors assume that a good proxy for supply shocks is the third moment of the distribution of price changes, and show that nominal rigidities imply a...

In this paper we analyze the incidence of the distribution of price changes on the inflation rate of Spanish regions (1994-2001). Especially, we pay attention to the role of variability and skewness. The methodology applied is based on the menu cost models developed by Ball and Mankiw. In...