Department of Economics and Business - Universitat Pompeu Fabra

Title:: New evidence on inflation persistence and price stickiness in the Euro area: Implications for macro modelling
Authors:: Ignazio Angelloni, Luc Aucremanne, Michael Ehrmann, Jordi Galí, Andrew Levin and Frank Smets
Date:: September 2005
Abstract:: This paper evaluates new evidence on price setting practices and inflation persistence in the euro area with respect to its implications for macro modelling. It argues that several of the most commonly used assumptions in micro-founded macro models are seriously challenged by the new findings.
Keywords:: Price setting practices, macro modellling
JEL codes:: E31, E52
Area of Research:: Macroeconomics and International Economics
Published in:: Journal of the European Economic Association, vol. 4 (2-3), 562-574, April-May 2006

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