Research Discussion Paper – RDP 9707 Internationalisation and Pricing Behaviour: Some Evidence for Australia

Contents

• Introduction
• Trends in Openness and Previous Work on the Relationship between Openness and Price Setting
• Long-term Trends in Relative Prices and Openness
• Openness and the Dynamic Response of Domestic Prices to Changes in Import Prices
• Conclusions
• Appendix A: Relative Prices – Industrial Countries
• Appendix B: OLS Estimates of Industry Level Responses to Import Prices
• Appendix C: Data Sources and Description
• References

This paper has benefited from discussions with Philip Lowe and David Gruen, and from comments from participants at Reserve Bank and Treasury seminars. The views expressed in this paper are those of the authors and do not necessarily reflect the views of the Reserve Bank of Australia.