Exchange rate pass-through in the euro area : the role of asymmetric pricing behavior /

Exchange rate pass-through in the euro area : the role of asymmetric pricing behavior /

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Bibliographic Details
Author / Creator:	Faruqee, Hamid, author.
Imprint:	Washington, D.C. : International Monetary Fund, ©2004.
Description:	1 online resource (26 pages) : illustrations.
Language:	English
Series:	IMF working paper, 2227-8885 ; WP/04/14 IMF working paper ; WP/04/14.
Subject:	Foreign exchange rates -- European Union countries. Balance of payments -- European Union countries. Pricing -- European Union countries. Eurozone. Balance of payments. Eurozone. Foreign exchange rates. Pricing. European Union countries. Electronic books.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12496125

Hidden Bibliographic Details
Other authors / contributors:	International Monetary Fund. European Department, issuing body.
ISBN:	1451891202 9781451891201 1281089095 9781281089090 9781451843156 1451843151
ISSN:	2227-8885
Notes:	Includes bibliographical references (pages 23-26). Restrictions unspecified Electronic reproduction. [S.l.] : HathiTrust Digital Library, 2010. Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 digitized 2010 HathiTrust Digital Library committed to preserve Print version record.
Summary:	Exchange rate pass-through in a set of euro area prices along the pricing chain is examined. Using a vector autoregression (VAR) approach, the empirics analyze the joint time-series behavior of the euro exchange rate and a system of euro-area prices in response to an exchange rate shock. The impulse-response functions from the VAR estimates are used to identify-in a 'new open economy macroeconomics model'-those key behavioral parameters that best replicate the pattern of exchange rate pass-through in the euro area. Area-wide prices are found to display incomplete pass-through, consistent with euro currency-pricing and pricing-to-market behavior. The results are compared to those for the other major industrial economies, and suggest that, as with the United States, "expenditure-switching" effects on the current account still operate but are generally small.
Other form:	Print version: Faruqee, Hamid. Exchange rate pass-through in the euro area. Washington, D.C. : International Monetary Fund, ©2004
Standard no.:	10.5089/9781451891201.001

Table of Contents:

"Contents"; "I. INTRODUCTION"; "II. EMPIRICAL ESTIMATES"; "A. VAR Methodology"; "B. Cross-Country Evidence"; "III. MODEL OF INCOMPLETE PASS-THROUGH"; "IV. MATCHING THEORY AND EMPIRICS"; "V. CONCLUSIONS"; "References"