Freely Determined versus Regulated Prices: Implications for the Measured Link between Money and Inflation

Albert S Dexter, Maurice Levi and Barrie R Nault

Journal of Money, Credit and Banking, 1993, vol. 25, issue 2, 222-30

Abstract: By constructing component indices for Canadian prices that are judged by a panel of experts to be either freely-determined or regulated, the authors are able to show that regulated prices respond less systematically and less quickly to changes in the money supply. They also show that idiosyncrasies in the relationship between money and the different component indices are offsetting. The authors' results suggest that sticky prices, which are an underpinning of new-Keynesian economics, may well be due to the inclusion of regulated prices in overall indices of inflation. Copyright 1993 by Ohio State University Press.

Date: 1993
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://links.jstor.org/sici?sici=0022-2879%2819930 ... 0.CO%3B2-I&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mcb:jmoncb:v:25:y:1993:i:2:p:222-30

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().