We use cross-section and time-series techniques to analyze pricing behavior in Sierra Leone. In cross-sectional data, we find that inflation volatility and product diversification are the main factors explaining differences in the frequency of price adjustments. We show that variance in the fraction of prices subject to change is a key determinant of inflation volatility in Sierra Leone, indicating that retail prices are sensitive to economic events. We explain variations in this fraction over time with past inflation and monetary growth, which are important policy variables.... 1 5 FLOUR OF WHEAT BAG (SMALL) 94 AFAMES WINE LITRE 178 STARCH 1 6 B READ KG 95 WHISKY (RED LAB EL) ... 1 PAIR 14 CHICKEN (LOCAL) KG 102 MENa#39;S SAFARI (READY-MADE) 1 186 BATTERY (12 VOLT) 1 15 CANNED anbsp;...
|Title||:||Why Do Prices in Sierra Leone Change so often? A+L3180 Case Study Using Micro-Level Price Data|
|Author||:||Mr. Arto Kovanen|
|Publisher||:||International Monetary Fund - 2006-02-01|