Industrial Pricing Behaviour And Devaluation

First published in 1974, Devaluation and Pricing Decisions is based on case studies of the export pricing decisions made by nineteen major British companies after the 1967 devaluation.The aim was to look in detail at the decisions that major British firms took after devaluation and to see how they had responded to this major change in government policy. This book shows how far the firms had anticipated the devaluation; what company objectives were at that time and what changes in these objectives, or in pricing and marketing policies, were made to take advantage of new opportunities for exporting and for import substitution. The researchers also examined the actual process of decision making to find what information was available to the decision makers and how they used it. The book is directed to businessmen taking decisions on export prices and marketing in the world of today where foreign exchange rates change frequently. It is also directed towards those responsible for shaping national economic policy. For students of economics, it represents a study showing, in considerable detail, how a number of businesses responded to the 1967 devaluation.

Presents the ONE behavioral approach to economics: a grand synthesis of Old, New and Evolutionary behavioral approaches.

The objective of this study is to provide an in-depth analysis of the exchange rate pass-through relationship, using Australian imports of manufactures as a case study. The study begins by piecing together the theoretical literature on exchange rate pass-through, to provide the basis for the development of models for the empirical analysis. To place the empirical analysis m comparative context, a critical survey of the existing empirical literature on exchange rate pass-through is then undertaken. This is followed by a review of aspects of the structure and performance of Australian manufacturing that relate to the theme of the study. Next, the data and methodology are discussed. The analysis of exchange rate pass-through is conducted in two stages. First, it seeks to establish the degree to which Australian dollar (AUD) import prices of total manufactures and 50 product categories contained therein have responded to the massive fluctuations in the AUD during the 1980s. This is done by applying an econometric procedure which avoids the pit-falls in previous studies to a carefully assembled data set. Second, the study investigates the determinants of inter-product differences in the degree of exchange rate pass-through. This is done by relating the pass-through coefficients to a series of variables representing foreign control, quantitative restrictions (QRs), product characteristics and market structure within a cross section regression framework.

The authors of this book argue that the "Scandinavian Model" could be a starting point for a more relevant theory of macroeconomics. The importance of macro dynamics is also stressed for the understanding of inflation, growth and distribution.