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Price Stickiness in the Euro Area

Author

Listed:
  • Luca Dedola
  • Erwan Gautier
  • Chiara Osbat
  • Sergio Santoro

Abstract

This chapter reviews the empirical evidence on price stickiness in the euro area. We provide an overview of the different sources of granular consumer and producer price data now available in the euro area. We document new stylized facts on price adjustment in the euro area over the last 20 years. We first present results on the frequency and size of price adjustment in the cross-section dimension. Then we describe some results on the evolution of price stickiness over time. We also derive some implications for the micro-foundations of macro models, discussing the consistency of available evidence with predictions of state- and time-dependent models.

Suggested Citation

  • Luca Dedola & Erwan Gautier & Chiara Osbat & Sergio Santoro, 2024. "Price Stickiness in the Euro Area," Working papers 958, Banque de France.
    • Handle: RePEc:bfr:banfra:958
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    More about this item

    Keywords

    Nominal Rigidities; Inflation; Micro Data; Euro Area;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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