Is Increased Price Flexibility Stabilizing? Redux

For helpful comments and suggestions, the authors thank Marco Del Negro, Jesus Fernandez-Villaverde, Marc Giannoni, Giorgio Primiceri, Ricardo Reis, Frank Schorfheide, Felipe Schwartzman, Jon Steinsson, Ivan Werning, Raf Wouters, seminar participants at the Federal Reserve Bank of New York, Federal Reserve Board, the Banque de France, and MIT, and conference participants at the European Economic Association/Econometric Society European meetings (EEA/ESEM), Annual meeting of the Society for Economic Dynamics, NBER Summer Institute, the Third Conference on Recent Developments in Macroeconomics, the Royal Economic Society Meetings, and the Ghent Workshop in Empirical Macroeconomics. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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