z-logo
Premium
More Facts about Prices: France Before and During the Great Recession
Author(s) -
BERARDI NICOLETTA,
GAUTIER ERWAN,
BIHAN HERVÉ LE
Publication year - 2015
Publication title -
journal of money, credit and banking
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.763
H-Index - 108
eISSN - 1538-4616
pISSN - 0022-2879
DOI - 10.1111/jmcb.12281
Subject(s) - economics , volatility (finance) , recession , inflation (cosmology) , monetary economics , price level , price setting , distribution (mathematics) , keynesian economics , econometrics , microeconomics , mathematics , mathematical analysis , physics , theoretical physics
Using microprice data, we document new facts on price rigidity in France: (i) each month 20.1% of prices are changed, which compares to 24.1% in the United States—excluding sales, however, the fraction of prices modified each month is about the same in France and in the United States (around 17%); (ii) the distribution of price changes is quite dispersed; (iii) the frequencies of price increases and decreases contribute a lot to inflation variations, and price increases are more frequent in January (even when sales are excluded); (iv) sales contribute significantly to the volatility of inflation but play a minor role in the transmission of macroeconomic fluctuations to prices; and (v) during the Great Recession patterns of price adjustment were only slightly modified.

This content is not available in your region!

Continue researching here.

Having issues? You can contact us here