Why do commodity prices fail to stabilize despite the depreciation in foreign exchange rates? This is a question Hadi Haqshenas endeavors to clarify in a write-up for the Persian daily Etemad.
Price stickiness, or sticky prices, is the resistance of market price(s) to change quickly, despite shifts in the broad economy suggesting that a different price is optimal.
"Sticky" is a general economics term that can apply to any financial variable that is resistant to change. When applied to prices, it means that the sellers or buyers of certain goods are reluctant to change the price, despite changes in input cost or demand patterns.
A translation of the article follows:
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