Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153394
Authors: 
Maćkowiak, Bartosz
Smets, Frank
Year of Publication: 
2008
Series/Report no.: 
ECB Working Paper 960
Abstract: 
We review the recent literature that studies new, detailed micro data on prices. We discuss implications of the new micro data for macro models. We argue that the new micro data are helpful for macro models, but not decisive. There is no simple mapping from the frequency of price changes in micro data to impulse responses of prices and quantities to shocks. We discuss ideas that promise to deliver macro models matching the impulse responses seen in macro data while being broadly in line with micro data.
Subjects: 
micro price data
models of price setting
real effects of nominal shocks
sticky prices
JEL: 
E3
E5
Document Type: 
Working Paper

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