EconPapers    
Economics at your fingertips  
 

Price controls, hyperinflation, and the inflation–relative price variability relationship

Rodrigo Cerda (), Álvaro Silva and Rolf Lüders ()
Additional contact information
Rodrigo Cerda: Facultad de Derecho, Pontificia Universidad Católica de Chile and ClapesUC (Centro Latinoamericano de Políticas Económicas y Sociales)
Rolf Lüders: Pontificia Universidad Católica de Chile

Empirical Economics, 2021, vol. 61, issue 4, No 2, 1725-1748

Abstract: Abstract Chile established between 1970 and 1973 a fixed price policy for many products that was eliminated at the end of 1973 following a military coup. We use these pricing policies and their subsequent removal to determine how inflation affects relative price variability under contrasting price regimes and a hyperinflationary environment. We do so using unique monthly data for 23 food products between January 1970 and May 1982. We construct different relative price variability measures and consistently find that the sensitivity of relative price variability to inflation is larger when there is price-fixing.

Keywords: Relative price variability; Inflation; Fixed-price regime (search for similar items in EconPapers)
JEL-codes: E31 E64 E65 N16 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s00181-020-01953-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:empeco:v:61:y:2021:i:4:d:10.1007_s00181-020-01953-w

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

DOI: 10.1007/s00181-020-01953-w

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2023-01-09
Handle: RePEc:spr:empeco:v:61:y:2021:i:4:d:10.1007_s00181-020-01953-w