Skip to main content

Differing degree of price flexibilities and the policy ineffectiveness proposition

Buy Article:

$55.00 plus tax (Refund Policy)

Abstract:

Price regulations impart stickiness to prices. The degree of response is analysed for three CPI subindex inflations - freely determined, regulated and mixed prices - and of aggregate CPI inflation to anticipated and unanticipated monetary policies. Freely determined prices and aggregate CPI show similar responses but faster and larger adjustments than regulated prices to anticipated monetary policies. The results imply that the extent to which monetary policies can influence prices depends on the degree of price inertia in various sectors. For monetary authorities to control inflation effectively, they need to focus on price movements in various sectors.

Document Type: Research Article

DOI: https://doi.org/10.1080/000368496327903

Publication date: 1996-09-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more