Economics, Econometrics and Finance
4 years ago

German Prices React to Volatility, Impacting Consumer Wallets.

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SSRN Electronic Journal
Consumer Price Adjustment Under the Microscope: Germany in a Period of Low Inflation
Johannes Hoffmann, Jeong‐Ryeol Kurz‐Kim

Paper Summary

The study looked at how prices in Germany adjusted during a period of low inflation from 1998 to 2003. They found that prices changed differently depending on the time and the economic conditions. The flexibility of prices in different sectors was related to how much input prices changed.

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