Sticky Prices in the Euro Area: A Summary of New Micro Evidence

  title={Sticky Prices in the Euro Area: A Summary of New Micro Evidence},
  author={Luis J. �?lvarez and Emmanuel Dhyne and Marco Hoeberichts and Claudia Kwapil and Herv{\'e} le Bihan and Patrick Lunnemann and Fernando Manuel Monteiro Martins and Roberto Sabbatini and Harald Stahl and Philip Vermeulen and Jouko Vilmunen},
  journal={European Central Bank Research Paper Series},
This paper presents original evidence on price setting in the euro area at the individual level. We use micro data on consumer (CPI) and producer (PPI) prices, as well as survey information. Our main findings are: (i) prices in the euro area are sticky and more so than in the US; (ii) there is evidence of heterogeneity and of asymmetries in price setting behaviour; (iii) downward price rigidity is only slightly more marked than upward price rigidity and (iv) implicit or explicit contracts and… Expand
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