IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Determinants of Relative Price Variability during a Recession: Evidence from Canada at the Time of the Great Depression

  • David Fielding

    ()

    (Department of Economics, University of Otago)

  • Chris Hajzler

    ()

    (Department of Economics, University of Otago)

  • Jim MacGee

    ()

    (Department of Economics, University of Western Ontario)

Most studies find that relative price variability (RPV) is a U-shaped or V-shaped function of anticipated inflation, and a V-shaped function of unanticipated inflation. One exception is Reinsdorf (1994), who finds that RPV in the United States during the 1980s recession was monotonically decreasing in unanticipated inflation. We suggest a reason for this difference, and test our conjecture using data from inter-war Canada. Our results indicate that in recessionary conditions a positive inflation shock does reduce RPV. However, this reduction is unlikely to correspond to higher consumer utility; this has implications for the conduct of monetary policy during a recession.

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.

File URL: http://www.business.otago.ac.nz/econ/research/discussionpapers/DP_1107.pdf
Our checks indicate that this address may not be valid because: 404 Not Found (http://www.business.otago.ac.nz/econ/research/discussionpapers/DP_1107.pdf [301 Moved Permanently]--> http://www.otago.ac.nz/economics/research//DP_1107.pdf). If this is indeed the case, please notify (Janet Bryant)


File Function: This version, 2011
Download Restriction: no

Paper provided by University of Otago, Department of Economics in its series Working Papers with number 1107.

as
in new window

Length: 49 pages
Date of creation: Aug 2011
Date of revision: Aug 2011
Handle: RePEc:otg:wpaper:1107
Contact details of provider: Postal: P.O. Box 56, Dunedin
Phone: +64 3 479 8725
Fax: 64 3 479 8171
Web page: http://www.business.otago.ac.nz/econ
Email:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:otg:wpaper:1107. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Janet Bryant)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.