Devereux, Michael B.; Engel, Charles M.; Storgaard, Peter E. - 2021
This paper develops a model of endogenous exchange rate pass through within an open economy macroeconomic framework …, where both pass-through and the exchange rate are simultaneously determined, and interact with one another. Pass-through is …-through under the condition that exchange rate volatility rises as the degree of pass-through falls. We show that the relationship …