Pricing-to-market in Swedish exports

Fluctuations in prices of Swedish exports to five countries are investigate d in this paper. We test whether there are systematic differences between p rices to different markets and whether relative export prices are affected by macroeconomic conditions in destination. countries. The test results ind icate 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 degr ee of pricing-to-market is also affected by aggregate demand in export mark ets.