Countercyclical dispersion of price changes is caused by diverging price adjustment between goods of different quality.
The rising markup has led to a 30% increase in the degree of monetary non-neutrality.
with Ting Lan and Lerong Li
The relationship between households’ MPC and faced price stickiness is important for monetary transmission and optimal monetary policy.
Optimal Monetary Policy with Asymmetric Shocks and Rational Inattention, New Draft Coming Soon
With Ho-Mou Wu
We propose a revised price index for the central bank to stabilize.