Reset Price Inflation and the Impact of Monetary Policy Shocks
研究发现，基于时间依赖定价和战略互补性的商业周期模型预测的美国通胀过于持久和稳定，通过计算重置价格通胀揭示了这一偏差，对现有商业周期解释提出挑战。
Many business cycle models use a flat short-run Phillips curve, due to time-dependent pricing and strategic complementarities, to explain fluctuations in real output. But, in doing so, these models predict unrealistically high persistence and stability of US inflation in recent decades. We calculate “reset price inflation”—based on new prices chosen by the subsample of price changers—to dissect this discrepancy. We find that the models generate too much persistence and stability both in reset price inflation and in the way reset price inflation is converted into actual inflation. Our findings present a challenge to existing explanations for business cycles.