What a difference a decade makes - survey evidence from Icelandic firms

Adalheidur O. Gudlaugsdottir, Karen A. Vignisdottir and Lilja S. Kro

Economics from Department of Economics, Central bank of Iceland

Abstract: Understanding firms' price-setting behaviour is of vital importance for central banks charged with maintaining price stability. This paper presents the results of a survey conducted among Icelandic firms in 2019, following a period of relative price stability, and contrasts it with the results from an almost identical survey taken in 2008, during a period of extreme volatility and uncertainty. The survey responses show that firms both review and change their prices less frequently in 2019 than they did in 2008. Furthermore, respondents indicate that the impact of changes in the exchange rate on pricing decisions is more symmetric than before, as firms are likelier to lower their prices following a currency appreciation, and a larger share of them report that a sizeable depreciation would be needed to prompt them to raise prices.

JEL-codes: D40 E31 L11 (search for similar items in EconPapers)
Date: 2022-12
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.cb.is/library/Skraarsafn---EN/Working-Papers/WP_90.pdf (application/pdf)

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:ice:wpaper:wp90

Access Statistics for this paper

More papers in Economics from Department of Economics, Central bank of Iceland Contact information at EDIRC.
Bibliographic data for series maintained by Central Bank of Iceland ( this e-mail address is bad, please contact ).