Josephine Smith

NYU Stern School of Business
Department of Finance
44 West 4th Street, Suite 9-86
New York, NY 10012
Tel: 212-998-0171

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: NYU Stern

NBER Working Papers and Publications

March 2012How Frequent Are Small Price Changes?
with Martin S. Eichenbaum, Nir Jaimovich, Sergio Rebelo: w17956
Recent empirical work suggests that small price changes are relatively common. This evidence has been used to criticize classic menu-cost models. In this paper, we use scanner data from a national supermarket chain and micro data from the Consumer Price Index to reassess the importance of small price changes. We argue that the vast majority of these changes are due to measurement error. We conclude that the evidence on the prevalence of small price changes is much too weak to be used as a litmus test of nominal rigidity models.

Published: Martin Eichenbaum & Nir Jaimovich & Sergio Rebelo & Josephine Smith, 2014. "How Frequent Are Small Price Changes?," American Economic Journal: Macroeconomics, American Economic Association, vol. 6(2), pages 137-55, April. citation courtesy of

November 2007The Long and the Short End of the Term Structure of Policy Rules
with John B. Taylor: w13635
We first document a large secular shift in the estimated response of the entire term structure of interest rates to inflation and output in the United States. The shift occurred in the early 1980s. We then derive an equation that links these responses to the coefficients of the central bank's monetary policy rule for the short-term interest rate. The equation reveals two countervailing forces that help explain and understand the nature of the link and how its sign is determined. Using this equation, we show that a shift in the policy rule in the early 1980s provides an explanation for the observed shift in the term structure. We also explore a shift in the policy rule in the 2002-2005 period and its possible effect on long-term rates.

Published: @ARTICLE{Smith_thelong, author = {Josephine M. Smith and John B. Taylor}, title = {The Long and Short End of the Term Structure of Policy Rules}, journal = {Journal of Monetary Economics, October 2009}, year = {}, pages = {907--917} }

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