Hidden Bibliographic Details
| Other authors / contributors: | Hakura, Dalia S.
International Monetary Fund. Institute for Capacity Development.
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| ISBN: | 9781475589801
1475589808
9781475510232
1475510233
9781475580617
1475580614
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| Digital file characteristics: | text file
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| Notes: | "September 2012."
Includes bibliographical references.
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| 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
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| Other form: | Print Version: 9781475589801
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| Standard no.: | 10.5089/9781475589801.001
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