Arbeitspapier

Price Rigidity and Flexibility: Recent Theoretical Developments. Introduction to the Special Issue

The price system, the adjustment of prices to changes in market conditions, is the primary mechanism by which markets function and by which the three most basic questions get answered: what to produce, how much to produce and for whom to produce. To the behaviour of price and price system, therefore, have fundamental implications for many key issues in microeconomics and industrial organization, as well as in macroeconomics and monetary economics. In microeconomics, managerial economics, and industrial organization, economists focus on the price system efficiency. In macroeconomics and monetary economics, economists focus on the extent to which nominal prices fail to adjust to changes in market conditions. Nominal price rigidities play particularly important role in modern monetary economics and in the conduct of monetary policy because of their ability to explain short-run monetary non-neutrality. The behaviour of prices, and in particular the extent of their rigidity and flexibility, therefore, is of central importance in economics.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 2006-02

Classification
Wirtschaft
Firm Behavior: Theory
Market Structure, Pricing, and Design: General
General Aggregative Models: Keynes; Keynesian; Post-Keynesian
Price Level; Inflation; Deflation
Monetary Policy, Central Banking, and the Supply of Money and Credit: General
Monetary Policy
Central Banks and Their Policies
Production, Pricing, and Market Structure; Size Distribution of Firms
Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices
Business Economics: General
Marketing and Advertising: General
Subject
Price Rigidity
Price Flexibility
Cost of Price Adjustment
Menu Cost
Managerial and Customer Cost of Price Adjustment
New Keynesian Economics
Price System

Event
Geistige Schöpfung
(who)
Levy, Daniel
Event
Veröffentlichung
(who)
Bar-Ilan University, Department of Economics
(where)
Ramat-Gan
(when)
2006

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Levy, Daniel
  • Bar-Ilan University, Department of Economics

Time of origin

  • 2006

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