We review recent evidence on price rigidity from the macroeconomics literature and discuss
how this evidence is used to inform macroeconomic modeling. Sluggish price adjustment is …

Using a novel dataset, which merges good-level prices underlying the PPI with the
respondents' balance sheets, we show that liquidity constrained firms increased prices in …

We show that after monetary policy announcements, the conditional volatility of stock market
returns rises more for firms with stickier prices than for firms with more flexible prices. This …

We document that international input-output linkages contribute substantially to
synchronizing producer price inflation (PPI) across countries. Using a multicountry, industry …

We prove that the ratio of kurtosis to the frequency of price changes is a sufficient statistic for
the real effects of monetary shocks, measured by the cumulated output response following …

Realistic heterogeneity in price rigidity interacts with heterogeneity in sectoral size and input-
output linkages in the transmission of monetary policy shocks. Quantitatively, heterogeneity …

Existing menu cost models, when parameterized to match the micro-price data, cannot
reproduce the extent to which the fraction of price changes increases with inflation. In …

We model the decisions of a multiproduct firm that faces a fixed “menu” cost: once it is paid,
the firm can adjust the price of all its products. We characterize analytically the steady state …

Using a survey of French manufacturing firms, we study how firms' expectations and actions
are affected by both aggregate and industry-specific conditions. In response to industry-level …

We present a flexible and scalable method for computing global solutions of high‐
dimensional stochastic dynamic models. Within a time iteration or value function iteration …