dc.contributor.author Fielding, David
dc.contributor.author Hajzler, Chris
dc.contributor.author MacGee, Jim
dc.identifier.citation Fielding, D., Hajzler, C., & MacGee, J. (2011). Determinants of Relative Price Variability during a Recession: Evidence from Canada at the Time of the Great Depression (Economics Discussion Papers Series No. 1107). University of Otago. Retrieved from http://hdl.handle.net/10523/1878 en
dc.description.abstract Most studies find that relative price variability (RPV) is a U-shaped or V-shaped function of anticipated inflation, and a V-shaped function of unanticipated inflation. One exception is Reinsdorf (1994), who finds that RPV in the United States during the 1980s recession was monotonically decreasing in unanticipated inflation. We suggest a reason for this difference, and test our conjecture using data from inter-war Canada. Our results indicate that in recessionary conditions a positive inflation shock does reduce RPV. However, this reduction is unlikely to correspond to higher consumer utility; this has implications for the conduct of monetary policy during a recession. en_NZ
dc.subject relative price variability en_NZ
dc.subject inflation en_NZ
dc.subject Canada en_NZ
dc.subject Great Depression en_NZ
dc.title Determinants of Relative Price Variability during a Recession: Evidence from Canada at the Time of the Great Depression en_NZ
otago.school Department of Economics en_NZ