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Article: Inflation and relative price variability in the short and long run: new evidence from the United States.
- Article from:
- Journal of Money, Credit & Banking
- Article date:
- August 1, 1996
- Author:
CopyrightCOPYRIGHT 1996 Ohio State University Press. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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JEL Classification: E30, E31. Key Words: Relative price variability, relative price dispersion, panel unit roots.
It is now established wisdom that relative prices are not independent of the level of inflation. Studies by, for example, Mills (1927), Vining and Elwertowski (1976), Parks (1978), Fischer (1981), or more recently, Debelle and Lamont (1995) have documented a positive relationship between inflation and relative prices in the United States. Similar findings have been documented in an international context by Hercowitz (1981), using data from West Germany, Domberger (1987), for the United Kingdom, and Lach and Tsiddon (1992, 1993) for Israel. More recently ...