Inflation, customers and relative prices

Vol. 11 No. 3 (1991)

Jul-Sep / 1991
Published July 1, 1991
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Franco, Gustavo H. B., and Carlos Parcias Jr. 1991. “Inflation, Customers and Relative Prices”. Brazilian Journal of Political Economy 11 (3):400-417.

Inflation, customers and relative prices

Gustavo H. B. Franco
Departamento. de Economia da Pontifícia Universidade Católica do Rio de Janeiro – PUC-Rio, Rio de Janeiro/RJ, Brasil.
Carlos Parcias Jr.
Banco Nacional de Desenvolvimento Social – BNDES, Rio de Janeiro/RJ
Brazilian Journal of Political Economy, Vol. 11 No. 3 (1991), Jul-Sep / 1991, Pages 400-417


The paper discusses the factors governing relative price changes often observed in sudden desinflations. It examines inflation induced changes in consumer behavior in markets with im-perfect information and, along similar lines, discusses ways through which inflation affects firms pricing decisions, focusing more specifically on changes in demand elasticity and on cash flow uncertainty.

JEL Classification: E31.

Keywords: Inflation price composition stabilization