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Retail prices during a change in monetary regimes: evidence from Sears, Roebuck catalogs, 1938-1951

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  • Andrew T. Young

    (University of Mississippi, MS, USA)

  • Alexander K. Blue

    (Emory University, GA, USA)

Abstract

We present microeconomic evidence on US pricing dynamics pre and post-establishment of the Bretton Woods (BW) monetary regime. We track prices of 49 goods (1172 observations) in 1938-1951 Sears, Roebuck catalogs. The average length between (nominal) price changes was over 2 years. The average was higher (2.05 years) in the pre-BW period than in the later (2.01 years). We find that prices of brand name goods were relatively rigid; three never changed price. Price changes were larger during the 1945-1951 period than pre-BW by between 0.60 and 1.83%. Price changes displayed a higher correlation with inflation pre-BW. Copyright © 2007 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/mde.1378
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

Volume (Year): 28 (2007)
Issue (Month): 7 ()
Pages: 763-775

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Handle: RePEc:wly:mgtdec:v:28:y:2007:i:7:p:763-775

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976

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  1. Andrew T. Young & Daniel Levy, 2013. "Explicit Evidence of an Implicit Contract," Working Papers 2013-06, Department of Economics, Bar-Ilan University.
  2. Tsiddon, Daniel, 1993. "The (Mis)Behaviour of the Aggregate Price Level," Review of Economic Studies, Wiley Blackwell, vol. 60(4), pages 889-902, October.
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  10. Arturo Estrella & Jeffrey C. Fuhrer, 2003. "Monetary Policy Shifts and the Stability of Monetary Policy Models," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 94-104, February.
  11. Jean-Robert Tyran & Elke Renner, 2003. "Price Rigidity in Customer Markets," University of St. Gallen Department of Economics working paper series 2003 2003-16, Department of Economics, University of St. Gallen.
  12. Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-91, June.
  13. Alan Kackmeister, 2005. "Yesterday's bad times are today's good old times: retail price changes in the 1890s were smaller, less frequent, and more permanent," Finance and Economics Discussion Series 2005-18, Board of Governors of the Federal Reserve System (U.S.).
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Cited by:
  1. Alan Kackmeister, 2007. "Yesterday's Bad Times Are Today's Good Old Times: Retail Price Changes Are More Frequent Today Than in the 1890s," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 39(8), pages 1987-2020, December.

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