TY  - RPRT
        AU  - Balleer, Almut
AU  - Link, Sebastian
AU  - Menkhoff, Manuel
AU  - Zorn, Peter
        TI  - Demand or Supply? Price Adjustment during the COVID-19 Pandemic
        PY  - 2020/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 13568
        UR  - https://www.iza.org/publications/dp13568
        AB  - We study price-setting behavior in German firm-level survey data to infer the relative importance of supply and demand during the Covid-19 pandemic. Supply and demand forces coexist, but demand shortages dominate in the short run. A reported negative impact of Covid-19 on current business is associated with a rise in the probability to decrease prices up to eleven percentage points. These results imply a role for aggregate demand stabilization policy to buffer the economic consequences of Covid-19 while containing the pandemic.
        KW  - producer price setting
KW  - supply
KW  - demand
KW  - COVID-19
KW  - fiscal policy
        ER  -