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• W2951536840 abstract "This paper presents a state-dependent pricing model with a two-stage chainof-production structure and serially correlated, idiosyncratic price adjustment cost process in each sector. The model can explain much of the observed volatility and persistence of inflation and output, and nonlinearity and asymmetry in the responses of prices and quantities to monetary shocks. We derive analytical solutions in a static version of the model to illustrate the main results and to gain insights. We solve the dynamic model using a modified nonlinear solution method that features indirect inference and self-validating inflation forecasts as key components." @default.
• W2951536840 created "2019-06-27" @default.
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• W2951536840 date "2018-01-01" @default.
• W2951536840 modified "2023-09-25" @default.
• W2951536840 title "Sectoral Interactions and Monetary Policy under Costly Price Adjustments" @default.
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