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Inflation, customers and relative prices

Author

Listed:
  • Gustavo H. B. Franco
  • Carlos Parcias Jr.

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.

Suggested Citation

  • Gustavo H. B. Franco & Carlos Parcias Jr., 1991. "Inflation, customers and relative prices," Brazilian Journal of Political Economy, Center of Political Economy, vol. 11(3), pages 400-417.
  • Handle: RePEc:ekm:repojs:v:11:y:1991:i:3:p:400-417:id:1472
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1472/1458
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    More about this item

    Keywords

    Inflation; price composition; stabilization;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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