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BestsellerE-book
Author Choudhri, Ehsan U., author.

Title The exchange rate pass-through to import and export prices : the role of nominal rigidities and currency choice / Ehsan U. Choudhri and Dalia S. Hakura.

Publication Info. Washington, D.C. : International Monetary Fund, Institute for Capacity Development, 2012.

Item Status

Description 1 online resource (34 pages).
text file
Series IMF working paper ; WP/12/226
IMF working paper ; WP/12/226.
Note "September 2012".
Summary "Using both regression- and VAR-based estimates, the paper finds that the exchange rate pass-through to import prices for a large number of countries is incomplete and larger than the pass-through to export prices. Previous studies have reported similar results, which give rise to the puzzle that while local currency pricing is needed to account for incomplete import price pass-through, it would not imply a lower export price passthrough. Recent explanations of this puzzle have emphasized markup adjustment in response to exchange rate changes. This paper suggests an alternative explanation based on the presence of both producer and local currency pricing. Using a dynamic general equilibrium model, the paper shows that a mix of producer and local currency pricing can explain the pass-through evidence even with a constant markup. The model can also explain the observed exchange rate and inflation variability as well as the fact that the regression and VAR estimates tend to be similar."- -Abstract.
Bibliography Includes bibliographical references.
Local Note eBooks on EBSCOhost EBSCO eBook Subscription Academic Collection - North America
Subject Foreign exchange rates -- Econometric models.
Foreign exchange rates -- Econometric models.
Imports -- Econometric models.
Imports -- Econometric models.
Imports.
Exports -- Econometric models.
Exports -- Econometric models.
Exports.
Genre/Form Electronic books.
Added Author Hakura, Dalia S.
International Monetary Fund. Institute for Capacity Development.
ISBN 9781475589801 electronic book
1475589808 electronic book
9781475510232
1475510233
9781475580617
1475580614