Temporal distribution of individual price changes is of crucial importance for business cycle theory and for the micro-foundations of price adjustment. While it is routinely assumed that price changes are staggered over time, both theory and evidence are ambiguous. We use a large Belgian data...

We analyze the effect of inflation on the average output of monopolistic firms facing a small fixed cost of changing nominal prices. Using Taylor expansions, we derive a general closed-form solution for the slope of the long-run Phillips curve. This very simple, unifying formula allows us to...

This report identifies a set of policy lessons for China today from the experience of financial deregulation, financial crisis and recovery in Scandinavia during the period 1985- 2000. Although there are considerable differences between the huge Chinese economy and the small Nordic countries,...

The goal of this report is to analyze nominal rigidities in the Euro area and evaluate their importance for the functioning of markets. Under flexible exchange rates the adjustment to economic shocks that have different effects across countries can take place through changes in the nominal...