Yesterday's bad times are today's good old times: retail price changes in the 1890s were smaller, less frequent, and more permanent
Divisions of Research & Monetary Affairs, Federal Reserve Board, 2005 - Antiques & Collectibles - 43 pages
"This paper compares nominal price rigidity in retail stores during two 28-month periods: 1889- 1891 and 1997-1999. The 1889-1891 microdata price quotes show: 1. a lower frequency of price changes; 2. a smaller average magnitude of price changes; 3. fewer "small" price changes; and, 4. fewer temporary price reductions. These differences are consistent with the 1889-1891 period having a higher cost of changing prices resulting in less adjustment to transitory price shocks. Changes in the retailing environment that may have led to a higher cost of changing prices in 1889-1891 are discussed."
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2-Month Temporary Price Adam Copeland Aldrich report Ana Aizcorbe Andreas Lehnert Andrew Cohen April Athanasios Orphanides August Berger Bils and Klenow Brian Sack Bureau of Labor Business Cycle Cecchetti cells Chain Store Consumer cost of changing Covitz Daniel datasets December decline deﬁnition Economics Discussion Series Effects Evidence February ﬁgure ﬁnd ﬁnding ﬁrst Food Marketing Institute frequency of price increase Inﬂation Interest Rates January John July June Labor Statistics larger price changes Macroeconomic magnitude of price Men’s menu cost Model Monetary Policy months nominal price rigidity nominal rigidity November Number Number of Price observations October optimal price percent permanent shocks previous price change Price Markdowns Price Reductions Filtered product groups proﬁt retail price microdata retailing environment sample share of price small price changes smaller average magnitude speciﬁcation Sticky Prices studies Supermarket Table Takeshi Kimura temporary price reductions temporary shocks today’s Tomatoes Underwear Vegetables Volume wholesale prices Women’s