Relative prices play important roles in economic dynamics, restoring short-run equilibrium in factor and product markets. In effect, they facilitate economic readjustment following disturbances and also generate deeper insights into the mechanisms of internal and external equilibria. As a result, a study of the nature and effectiveness of relative prices in the economic system would not only enhance our understanding of the comparative structures and impacts of such prices in market economies but also shed significant light on the economic adjustment processes in the less advanced or emerging market economies, especially, in matters of adjustment lags, adjustment costs and output responses. It is expected that, contributors to the special issue would utilize modern analytical econometric techniques such as the non-linear autoregressive distributed lag, helping to disentangle symmetric policy impact from its asymmetric counterpart as well as the Bayesian method that aims to improve forecast probability outcome of a policy experiment.

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