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Pricing‐to‐market in Swedish Exports
Author(s) -
Alexius Annika,
Vredin Anders
Publication year - 1999
Publication title -
scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/1467-9442.00154
Subject(s) - economics , neutrality , monetary economics , sample (material) , relative price , international economics , philosophy , chemistry , epistemology , chromatography
Fluctuations in prices of Swedish exports to five countries are investigated in this paper. We test whether there are systematic differences between prices to different markets and whether relative export prices are affected by macroeconomic conditions in destination countries. The test results indicate that deviations from no pricing‐to‐market and neutrality of money are quite common and persistent. Over a sample of 15 years, long‐run monetary neutrality is rejected in almost half of the cases. In most cases, the degree of pricing‐to‐market is also affected by aggregate demand in export markets.