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Price selection on the two sides of the Atlantic
The effectiveness of monetary policy depends crucially on the degree of price flexibility.
Peter KARADI, Juergen AMANN, Javier SANCHEZ BACHILLER, Pascal SEILER, Jesse WURSTEN
Nov 1, 2023 1 min read Research
Price selection on the two sides of the Atlantic
Price setting on the two sides of the Atlantic - Evidence from supermarket scanner data
We compare supermarket price setting in the US and the euro area and assess its impact on food inflation. We find that both higher frequency and stronger state dependence of price changes contribute to higher flexibility of supermarket inflation in the US relative to the euro area.
Peter KARADI, Juergen AMANN, Javier SANCHEZ BACHILLER, Pascal SEILER, Jesse WURSTEN
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Price setting on the two sides of the Atlantic - Evidence from supermarket scanner data