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- W3047100783 abstract "Recent low inflation is motivating new research to better characterise how individual firms and workers set prices and wages. In this article, we describe a new approach which emphasises that the costs of decision-making may limit the precision of price and wage changes. As well as making better sense of price and wage changes in microeconomic data, this new approach also strikes a middle ground between two leading models of monetary policy transmission, improving our quantitative understanding of the short-run effects of monetary policy on output and the short-run trade-off between inflation and unemployment. JEL Classification: E31, D81, C73" @default.
- W3047100783 created "2020-08-10" @default.
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- W3047100783 date "2019-06-01" @default.
- W3047100783 modified "2023-09-24" @default.
- W3047100783 title "Price and Wage Setting when Accurate Decisions Are Costly: Implications for Monetary Policy Transmission" @default.
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