We prove that the ratio of kurtosis to the frequency of price changes is a sufficient statistic for
the real effects of monetary shocks, measured by the cumulated output response following …

Using CPI microdata for 11 euro area countries over 2010–2019, we document new findings
on consumer price rigidity in the euro area:(i) the average frequency of price changes is 12 …

Based on an original data set of more than 500,000 non-alcoholic beverage price records,
we evaluate the impact on consumer prices of the 'soda tax', an excise on drinks with added …

In this article, we analyze how inflation affects firms' price-setting behavior. For a class of
menu cost models, we derive several predictions about how price-setting changes with …

Using a survey of French manufacturing firms, we study how firms' expectations and actions
are affected by both aggregate and industry-specific conditions. In response to industry-level …

How do retailers react to cost changes? While temporary sales account for 95% of price
change in our data, retail prices respond to a wholesale cost increase entirely through the …

Macroeconomists traditionally ignore temporary price markdowns (“sales”) under the
assumption that they are unrelated to aggregate phenomena. We revisit this view. First, we …

Professional forecasters failed to anticipate the sharp fall in inflation in the euro area in 2013–
2014. We investigate whether this forecasting failure can be partly attributed to a break in the …

In a broad class of sticky-price models, the non-neutrality of nominal shocks is captured by a
simple sufficient statistic: the ratio of the kurtosis of the price change distribution over the …

We assess the role of cognitive convenience in the popularity and rigidity of 0-ending prices
in convenience settings. Studies show that 0-ending prices are common at convenience …