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3 Lessons from Hyperinflationary Periods

Author

Listed:
  • Daniel Levy

    (Bar-Ilan University)

  • Mark Bergen
  • Thomas Bergen
  • Rose Semenov

Abstract

Inflation is painful, for firms, customers, employees, and society. But careful study of periods of hyperinflation point to ways that firms can adapt. In particular, companies need to think about how to change prices regularly and cheaply — because constant price changes can ultimately be very, very expensive. And they should consider how to communicate those price changes to customers. Providing clarity and predictability can increase consumer trust and help firms in the long run.

Suggested Citation

  • Daniel Levy & Mark Bergen & Thomas Bergen & Rose Semenov, 2022. "3 Lessons from Hyperinflationary Periods," Working Papers 2022-08, Bar-Ilan University, Department of Economics.
    • Handle: RePEc:biu:wpaper:2022-08
    as

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    References listed on IDEAS

    as
    1. Levy, Daniel & Bergen, Mark & Dutta, Shantanu & Venable, Robert, 1997. "The Magnitude of Menu Costs: Direct Evidence from Large U.S. Supermarket Chains," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 112(3), pages 791-824.
    2. Levy, Daniel & Dutta, Shantanu & Bergen, Mark & Venable, Robert, 1998. "Price Adjustment at Multiproduct Retailers," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 19(2), pages 81-120.
    3. Snir, Avichai & Chen, Haipeng (Allan) & Levy, Daniel, 2021. "Stuck at Zero: Price Rigidity in a Runaway Inflation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue forthcomi.
    4. Daniel Levy & Avichai Snir, 2021. "Stuck at Zero: Price Rigidity in a Runaway Inflation," Working Papers 2021-04, Bar-Ilan University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inflation; Hyperinflation; Pricing; Price Setting; Price Adjustment; Menu Cost; Cost of Price Adjustment; Implicit Contract; Long-Term Relationship;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General

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