Inflation, Demand, Import Competition and Markups in Greek Manufacturing Industries
This paper explores the extent to which markups of selected Greek manufacturing industries are affected by the high level and variability of the inflation rate using annual industry data from the period 1958-1990. In addition, it is examined whether or not the state of demand, current or future, together with import competition exert any influence on markups. This empirical analysis may shed new light on the theoretical developments in new Keynesian economics that are currently formulated. JEL Classification: B2, C5, D4, E3. Keywords: Market Power, Inflation, Business Cycles, New Keynesian Economics.
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Volume (Year): 52 (1999)
Issue (Month): 2 ()
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