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Sticky Prices and Monetary Policy Shocks
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. microExpand
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Inventories and Real Rigidities in New Keynesian Business Cycle Models
Kryvtsov and Midrigan (2008) study the behavior of inventories in an economy with menu costs, fixed ordering costs and the possibility of stockouts. This paper extends their analysis to a richerExpand
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Inventories, Markups, and Real Rigidities in Menu Cost Models
Real rigidities that limit the responsiveness of real marginal cost to output are a key ingredient of sticky price models necessary to account for the dynamics of output and inflation. We argue here,Expand
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Adopting Price-Level Targeting under Imperfect Credibility
This paper measures the welfare gains of switching from inflation-targeting to price-level targeting under imperfect credibility. Vestin (2006) shows that when the monetary authority cannot commit toExpand
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The evolution of firm-level distributions for Ukrainian manufacturing firms
We document rich variation across observed firms’ characteristics, and the accompanying macroeconomic volatility, often related to political turmoil for Ukrainian manufacturing firms. We use a uniqueExpand
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Multi-Product Pricing: Theory and Evidence From Large Retailers in Israel
Les theories habituelles sur l’ajustement des prix sont fondees sur le probleme des entreprises a produit unique. Elles pourraient donc ne pas convenir a l’analyse de la dynamique des prix au seinExpand
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Adopting price-level targeting under imperfect credibility in ToTEM
Using the Bank of Canada's main projection and policy-analysis model, ToTEM, this paper measures the welfare gains of switching from inflation targeting to price-level targeting under imperfectExpand
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On the Importance of Sales for Aggregate Price Flexibility
Macroeconomists have traditionally ignored the behavior of temporary price markdowns (“sales”) by retailers. Although sales are common in the micro price data, they are assumed to be unrelated toExpand
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On the Nexus of Monetary Policy and Financial Stability: Recent Developments and Research
Because financial and macroeconomic conditions are tightly interconnected, financial stability considerations are an important element of any monetary policy framework. Yet, the circumstances underExpand
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Central Bank Communication that Works: Lessons from Lab Experiments
Abstract The causal effects of central bank communication on economic expectations and their underlying mechanisms are tested in controlled laboratory experiments. We find that central bankExpand
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