ABSTRACT
This chapter analyses price dynamics arising from the process of change. At the micro level, prices change as the behaviour of individual consumers and firms change through innovation and adaptation. At the meso level, differential firm growth in the process of creative destruction changes market shares and impacts average prices over an industry or sector. Prices at the macro level change due to the cumulative impact of changes at the micro and meso levels as well as influences from changes in industrial structure and evolving monetary and financial institutions. Price changes at all levels of analysis are uneven over time and across sectors.
