Atkin, David J. - In: CESifo economic studies : CESifo, a joint initiative of … 58 (2012) 2, pp. 373-384
A counter-intuitive result from consumer theory is that consumers facing stable prices will benefit from a mean-preserving spread of those prices. This article explores a new explanation for why the common intuition that price volatility is undesirable may be correct: the presence of habit...