Search Results
Journal Article
Interview: Jean Tirole
French economist Jean Tirole, recipient of the 2014 Nobel Memorial Prize in Economic Sciences, sees a close similarity between economics and the "caring profession" of medicine. "The economist," he contended in his recent book Economics for the Common Good, "like the oncologist, makes a diagnosis on the basis of the best available (though necessarily imperfect) knowledge, and then either proposes the most suitable treatment on that basis or no treatment at all, if none seems necessary."
Discussion Paper
How Businesses Set Prices—In Their Own Words
There has been a lot of interest in firms’ pricing decisions in the past few years—both during the inflation surge of 2021-23 and in the more recent rounds of tariff increases. In this post, we let firms speak for themselves about what factors they consider when adjusting prices in response to various shocks. The analysis is based on an ongoing research project, joint with the Atlanta and Cleveland Federal Reserve Banks, on how businesses set prices and the extent of passthrough of cost increases. In particular, we leverage the qualitative portion of the study based on open-ended ...