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The Cyclicality of Sales, Regular, and Effective Prices: Business Cycle and Policy Implications: Comment

By Etienne Gagnon, David ³¢Ã³±è±ð³ú-³§²¹±ô¾±»å´Ç, and Jason Sockin

òòò½Íø Review, October 2017

Coibion, Gorodnichenko, and Hong (2015) argue that the CPI underestimates the deceleration in consumer prices during economic downturns because the index fails to account for the reallocation of consumer spending from high-price to low-price stores. We sh...