Pricing-to-market in Swedish exports

Fluctuations in prices of Swedish exports to five countries are investigated in this paper. We test whether there are systematic differences between prices to different markets and whether relative export prices are affected by macroeconomic conditions in destination. countries. The test results indicate that deviations from no pricing-to-market and neutrality of money are quite common and persistent. Over a sample of 15 years, long-run monetary neutrality is rejected in almost half of the cases. In most cases, the degree of pricing-to-market is also affected by aggregate demand in export markets.