Exchange Rate Pass-Through into Import Prices
We provide cross-country and time series evidence on the extent of exchange rate pass-through into the import prices of 23 OECD countries. We find compelling evidence of partial pass-through in the short run, especially within manufacturing industries. Over the long run, producer-currency pricing is more prevalent for many types of imported goods. Countries with higher rates of exchange rate volatility have higher pass-through elasticities, although macroeconomic variables have played a minor role in the evolution of pass-through elasticities over time. Far more important for pass-through changes in these countries have been the dramatic shifts in the composition of country import bundles. © 2005 President and Fellows of Harvard College and the Massachusetts Institute of Technology.
Year of publication: |
2005
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Authors: | Campa, José Manuel ; Goldberg, Linda S. |
Published in: |
The Review of Economics and Statistics. - MIT Press. - Vol. 87.2005, 4, p. 679-690
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Publisher: |
MIT Press |
Saved in:
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