Robustness of the relationship between price variability and inflation for US manufacturing
Elizabeth Caucutt (),
Mrinal Ghosh and
Applied Economics, 1998, vol. 30, issue 4, 513-519
We study the relationship between relative price variability and inflation in two different ways. We first look at product-class census unit values for five time periods between 1958 and 1982, and find evidence of a positive relationship between variability and inflation. Then we directly update the Vining and Elwertowski (1976) study for the period 1974-91, using individual commodity series from the Bureau of Labor Statistics. We conclude by discussing differences across industries in price stickiness.
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