Economic Theory

1 article

A dramatic image illustrating the 'rockets and feathers effect' with a gas pump showing rapidly increasing prices and a feather gently falling in the background, symbolizing asymmetric price transmission.

What Is the Rockets and Feathers Effect? An Explainer on Asymmetric Price Transmission

The 'rockets and feathers effect' describes how prices, like gasoline, rise quickly but fall slowly. This asymmetric price transmission impacts consumer budgets and business strategies.

Priya Sen·April 3, 2026