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Reset Price Inflation and the Impact of Monetary Policy Shocks

  • Pete Klenow

    (Stanford University)

  • Ben Malin

    (Federal Reserve Board)

  • Mark Bils

    (University of Rochester)

inflation. We find that time-dependent models imply unrealistically high persistence and stability of reset price inflation. This discrepancy is exacerbated by adding strategic complementarities, even under state-dependent pricing. A state-dependent model with no strategic complementarities aligns most closely with the data.

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Paper provided by Society for Economic Dynamics in its series 2010 Meeting Papers with number 1079.

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Date of creation: 2010
Date of revision:
Handle: RePEc:red:sed010:1079
Contact details of provider: Postal: Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA
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