Inflation, customers and relative prices

Main Article Content

Gustavo H. B. Franco
Carlos Parcias Jr.

Abstract

The paper discusses the factors governing relative price changes often observed in sudden desinflations. It examines inflation induced changes in consumer behavior in markets with im-perfect information and, along similar lines, discusses ways through which inflation affects firms pricing decisions, focusing more specifically on changes in demand elasticity and on cash flow uncertainty.


JEL Classification: E31.

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How to Cite
Franco, Gustavo H. B., and Carlos Parcias Jr. 1991. “Inflation, Customers and Relative Prices”. Brazilian Journal of Political Economy 11 (3):400-417. https://doi.org/10.1590/0101-31571991-0868.
Section
Review