Inflation and Relative Price Variability: Parks' Study Reexamined
The authors show that Richard W. Parks' (1978) widely cited evidence on the correlation between the rate of inflation and the variability of relative prices in the United States during 1948-75 depends on one observation, 1974. When the sample period is extended through 1989, the correlation depends on the observations for 1974 and 1980. Since both are years of large oil price shocks, the authors make the case that causation is likely to run from these shocks to relative price variability and inflation with accommodating monetary policy playing a role. Copyright 1993 by Ohio State University Press.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 25 (1993)
Issue (Month): 4 (November)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879|