We review recent evidence on price rigidity from themacroeconomics literature and discuss how this evidence is used to inform macroeconomic modeling. Sluggish price adjustment is a leading explanation for the large effects of demand shocks on output and, in particular, the effects of monetary policy on output. A recent influx of data on individual prices has greatly deepenedmacroeconomists’ und...

The AI field started out with grand dreams of human-level artificial general intelligence. During the last half-century, enthusiasm for these grand AI dreams – both within the AI profession and in society at large -has risen and fallen repeatedly, each time with a similar pattern of high hopes and media hype followed by overall disappointment. Throughout these fluctuations, though, research and...

This paper studies the usefulness of the P-model in the analysis of the behaviour of prices in Iranian economy. The P-model is based on the Quantity of Theory of Money. This model believes that the price level tends to move towards the equilibrium price level. The model uses price gap to forecast inflation, if the equilibrium price is greater than the current price, there is a tendency for the ...

crude oil price and the u.s. effective exchange rate are two main economic variables that have had real effects on world welfare situation. the aim of this paper is to test whether there is a stable long-run relationship between oil prices and the u.s. dollar, expressed in real term. to this end, we perform co-integration and causality tests between the two variables, using quarterly data from ...