Price Rigidity : Microeconomic Evidence and Macroeconomic Implications

@inproceedings{Nakamura2012PriceR,
  title={Price Rigidity : Microeconomic Evidence and Macroeconomic Implications},
  author={Emi Nakamura and J{\'o}n B Steinsson},
  year={2012}
}
We review recent evidence on price rigidity from themacroeconomics literature and discuss how this evidence is used to inform macroeconomic modeling. Sluggish price adjustment is a leading explanation for the large effects of demand shocks on output and, in particular, the effects of monetary policy on output. A recent influx of data on individual prices has greatly deepenedmacroeconomists’ understanding of individual price dynamics. However, the analysis of these new data raises a host of new… CONTINUE READING
Highly Cited
This paper has 33 citations. REVIEW CITATIONS

References

Publications referenced by this paper.
Showing 1-10 of 124 references

Sticky Prices: New Evidence from Retail Catalogs,

  • A. K. Kashyap
  • Quarterly Journal of Economics,
  • 1995
Highly Influential
6 Excerpts

Heterogeneity and Output Fluctuations in a Dynamic Menu-Cost Economy,

  • R. J. Caballero, E. M. Engel
  • “Dynamic (S,s) Economies,” Econometrica,
  • 1991
Highly Influential
10 Excerpts

Sticky Borders,

  • G. Gopinath
  • Rigobon
  • 2008
Highly Influential
5 Excerpts

Real Rigidities and the Non-Neutrality of Money,

  • L. Ball, D. Romer
  • Review of Economic Studies,
  • 1990
Highly Influential
6 Excerpts

Similar Papers

Loading similar papers…