 Some Final RemarksChapter 5 in Business Pricing and Inflation, 1983, pp 92-98 from Palgrave Macmillan Abstract: Abstract One of the central themes in our empirical work has been the demand on price behaviour. In Chapter 2, we argued that a sharp distinction should be drawn between competitive theories which link, via a Walrasian adjustment mechanism, price changes with the level of excess demand, and other price-making theories which indicate a link between price changes and demand changes, and often view that link is an insubstantial one. The distinction between a view which stresses the role of the level of excess demand and a view which stresses the role of changes in demand is clearly crucial in the debate over the control of inflation. Simply, the first view would indicate that low levels of excess demand would generate continuing falls in the rate of price increase (relative to cost increases), whilst the second view would point to a reduction in demand reducing the rate of inflation, but not continuing low levels of demand. Further the second view would often have doubts even about the effect of demand reductions on the pace of inflation. Keywords: Price Change; Real Wage; Money Supply; Excess Demand; Relative Prex (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-03166-5_5 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-03166-5_5 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.