Alex Grimaud

Using 190 million price quotes from 9 euro-area countries, the paper shows prices changed more often during the inflation surge: about 8 % per month in 2010–2019, 12 % in 2022, and nearly 16 % in Jan 2023. Most of the rise came from more price increases. This implies a more flexible ...

The paper develops and estimates a model in which firms and workers adjust prices and wages more often when inflation is high, making inflation react more strongly to shocks. Using euro-area data from 1999–2024, it explains the recent inflation surge and shows that monetary policy is more ...