Price Dispersion and Inflation Persistence

Inflation And Relative Price Dispersion: Evidence For Iran

Relative Price Distortions and Inflation Persistence

Sticky-price models often suggest that relative price distortion is a major cost of in‡ation. We provide an intuition for this: Even at low rates, in‡ation strongly a¤ects price dispersion which in turn has an impact on the economy qualitatively similar to, and of the order of magnitude of, a negative shift in productivity. The utility cost of price dispersion is quanti…ed and its impact on opt...

Price Setting and Inflation Persistence in Austria

Price Setting and Inflation Persistence in Austria

inflation and relative price dispersion: evidence for iran