Microfoundations of Macroeconomic Price Adjustment: Survey Evidence from Swedish Firms

Abstract

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Price-Setting Behaviour in Belgium: What Can Be Learned from an Ad Hoc Survey ?

“…In accordance with Belgian micro CPI data (see Aucremanne and Dhyne (2004)) and with the findings of Apel et al (2001) for Sweden and Fabiani et al (2004) for Italy, prices do not change frequently. 55 p.c.…”

“…whereas the list of the tested theories on nominal and real rigidities is very similar to what was done by Apel et al (2001) for Sweden.…”

“…The content of the questionnaire was mainly inspired by Apel et al (2001), Blinder et al (1998) and Fabiani et al (2004), although some additional questions were included in order to take into account the fact that the Belgian economy is a very open one and that little is known about price-setting behaviour on foreign markets. Moreover, on designing the questionnaire, an attempt was made to incorporate the most recent developments in the relevant literature, in particular on the following two issues which are of particular interest when addressing the above-mentioned persistence puzzles stressed in Taylor (1999).…”

“…First of all, as in Apel et al (2001), a relatively long list of sources of price rigidity was tested, including both theories on nominal rigidities and theories on real rigidities (question B4). Jeanne (1998), Romer (2001), Eichenbaum and Fisher (2004) are examples of the New-Keynesian literature in which typically the interplay between both types of rigidity is emphasised, while Chari, Kehoe and Mc Grattan (2000) seriously challenge the ability of (empirically realistic) nominal rigidities, as such, to produce sufficient sluggishness at the aggregate level.…”

“…The survey was conducted by the National Bank of Belgium in February 2004 and as such it constitutes the Belgian part of a euro area-wide initiative within the scope of the "Eurosystem Inflation Persistence Network". Its content was mainly inspired by similar surveys carried out by Blinder et al (1998) in the United States, Apel et al (2001) in Sweden, Hall et al (2000) in the United Kingdom and Fabiani et al (2004) in Italy.…”