Nevertheless, as Woodford (2006) remarks, if different price adjustment schemes are assumed the form of the function varies: «For example, if the probability of adjustment of an individual price is increasing in the time since that price was last reviewed - a specification that is both intuitively plausible and more consistent than the simple Calvo specification with empirical models of inflation dynamics- then welfare losses are proportional to a discounted sum of squared deviations of the current inflation rate from a moving average of recent past inflation rates, rather than deviations from zero.
At this point, I should like to comment briefly on the issue of the sub-frontloading of euro banknotes to the general public, a matter on which I have reported to you in greater detail on previous occasions.