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New evidence on inflation persistence and price stickiness in the Euro area: Implications for macro modelling

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Listed:
  • Ignazio Angelloni
  • Luc Aucremanne
  • Michael Ehrmann
  • Jordi Galí
  • Andrew Levin
  • Frank Smets

Abstract

This paper evaluates new evidence on price setting practices and inflation persistence in the euro area with respect to its implications for macro modelling. It argues that several of the most commonly used assumptions in micro-founded macro models are seriously challenged by the new findings.

Suggested Citation

  • Ignazio Angelloni & Luc Aucremanne & Michael Ehrmann & Jordi Galí & Andrew Levin & Frank Smets, 2005. "New evidence on inflation persistence and price stickiness in the Euro area: Implications for macro modelling," Economics Working Papers 910, Department of Economics and Business, Universitat Pompeu Fabra.
  • Handle: RePEc:upf:upfgen:910
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    References listed on IDEAS

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    More about this item

    Keywords

    Price setting practices; macro modellling;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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