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Retail prices during a change in monetary regimes: evidence from Sears, Roebuck catalogs, 1938–1951

✍ Scribed by Andrew T. Young; Alexander K. Blue


Publisher
John Wiley and Sons
Year
2007
Tongue
English
Weight
181 KB
Volume
28
Category
Article
ISSN
0143-6570

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✦ Synopsis


Abstract

We present microeconomic evidence on US pricing dynamics pre and post‐establishment of the Bretton Woods (BW) monetary regime. We track prices of 49 goods (1172 observations) in 1938–1951 Sears, Roebuck catalogs. The average length between (nominal) price changes was over 2 years. The average was higher (2.05 years) in the pre‐BW period than in the later (2.01 years). We find that prices of brand name goods were relatively rigid; three never changed price. Price changes were larger during the 1945–1951 period than pre‐BW by between 0.60 and 1.83%. Price changes displayed a higher correlation with inflation pre‐BW. Copyright © 2007 John Wiley & Sons, Ltd.