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3 Lessons from Hyperinflationary Periods

Author

Listed:
  • Mark Bergen

    (UMN - University of Minnesota [Twin Cities] - UMN - University of Minnesota System)

  • Thomas Bergen

    (University of Minnesota)

  • Daniel Levy

    (RCEA - Rimini Center for Economic Analysis, Emory University [Atlanta, GA], Bar-Ilan University [Israël], ISET - International School of Economics at TSU, ICEA)

  • Rose Semenov

    (UMN - University of Minnesota [Twin Cities] - UMN - University of Minnesota System)

Abstract

Inflation is painful, for firms, customers, employees, and society. But careful study of periods of hyperinflation point to ways that firms can adapt. In particular, companies need to think about how to change prices regularly and cheaplybecause constant price changes can ultimately be very, very expensive. And they should consider how to communicate those price changes to customers. Providing clarity and predictability can increase consumer trust and help firms in the long run.

Suggested Citation

  • Mark Bergen & Thomas Bergen & Daniel Levy & Rose Semenov, 2022. "3 Lessons from Hyperinflationary Periods," Post-Print hal-03881383, HAL.
    • Handle: RePEc:hal:journl:hal-03881383
    Note: View the original document on HAL open archive server: https://hal.science/hal-03881383
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    References listed on IDEAS

    as
    1. Levy, Daniel & Bergen, Mark & Dutta, Shantanu & Venable, Robert, 1997. "The Magnitude of Menu Costs: Direct Evidence from Large U.S. Supermarket Chains," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 112(3), pages 791-824.
    2. Daniel Levy & Avichai Snir, 2021. "Stuck at Zero: Price Rigidity in a Runaway Inflation," Working Papers 2021-04, Bar-Ilan University, Department of Economics.
    3. Snir, Avichai & Chen, Haipeng (Allan) & Levy, Daniel, 2021. "Stuck at Zero: Price Rigidity in a Runaway Inflation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue forthcomi.
    4. Daniel Levy & Shantanu Dutta & Mark Bergen & Robert Venable, 1998. "Price adjustment at multiproduct retailers," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 19(2), pages 81-120.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inflation Rate; Hyperinflation; Pricing; Price Setting; Price Adjustment; Menu Cost; Cost of Price Adjustment; Implicit Contract; Long-Term Relationship;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General

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