L1 - Market Structure, Firm Strategy, and Market Performance

• Micro Foundations of Price-Setting Behaviour: Evidence from Canadian Firms

  Staff Working Paper 2007-31 Daniel de Munnik, Kuan Xu

  How do firms adjust prices in the marketplace? Do they tend to adjust prices infrequently in response to changes in market conditions? If so, why? These remain key questions in macroeconomics, particularly for central banks that work to keep inflation low and stable.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Inflation and prices, Transmission of monetary policy JEL Code(s): D, D4, D40, E, E3, E30, L, L1, L11