Inflation, customers and relative prices

Gustavo H. B. Franco () and Carlos Parcias ()

Brazilian Journal of Political Economy, 1991, vol. 11, issue 3, 400-417

Abstract: The paper discusses the factors governing relative price changes often observed in sudden desinflations. It examines inflation induced changes in consumer behavior in markets with im-perfect information and, along similar lines, discusses ways through which inflation affects firms pricing decisions, focusing more specifically on changes in demand elasticity and on cash flow uncertainty. JEL Classification: E31.

Keywords: Inflation; price composition; stabilization (search for similar items in EconPapers)
Date: 1991
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