The Exchange Rate Pass -Through to Import and Export Prices

Released on by Ehsan U. Choudhri
preview-18

  • The Exchange Rate Pass -Through to Import and Export Prices Book Detail

  • Author : Ehsan U. Choudhri
  • Release Date : 2012-09-01
  • Publisher : International Monetary Fund
  • Genre : Business & Economics
  • Pages : 34
  • ISBN 13 : 1475510233
  • File Size : 40,40 MB
DOWNLOAD BOOK

The Exchange Rate Pass -Through to Import and Export Prices by Ehsan U. Choudhri PDF Summary

Book Description: 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 pass-through. 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.

Disclaimer: www.yourbookbest.com does not own The Exchange Rate Pass -Through to Import and Export Prices books pdf, neither created or scanned. We just provide the link that is already available on the internet, public domain and in Google Drive. If any way it violates the law or has any issues, then kindly mail us via contact us page to request the removal of the link.

Exchange Rates and Prices

Exchange Rates and Prices

File Size : 10,10 MB
Total View : 3440 Views
DOWNLOAD

Originally published in 1996. This study looks at the impact of exchange rate fluctuation on the pricing practices of foreign industries that import into the Un