Showing 1 - 10 of 44
We study firm-level pricing behavior through the lens of exchange rate pass-through and provide new evidence on how … firm-level market shares and price complementarities affect pass-through decisions. Using micro-data from U.S. import …. Finally, based on the model, we find that direct cost pass-through and price complementarities play approximately equally …
Persistent link: https://www.econbiz.de/10011276376
This Paper provides a baseline general-equilibrium model of optimal monetary policy among interdependent economies with monopolistic firms and nominal rigidities. An inward-looking policy of complete domestic output stabilization is not optimal when firms' markups are exposed to currency...
Persistent link: https://www.econbiz.de/10005662226
The U.S. dollar holds a dominant place in the invoicing of international trade, along two complementary dimensions. First, most U.S. exports and imports invoiced in dollars. Second, trade flows that do not involve the United States are also substantially invoiced in dollars, an aspect that has...
Persistent link: https://www.econbiz.de/10005791509
drive a wedge between prices across countries at both wholesale and retail level. Optimal pricing thus results in possibly … international price discrimination by firms. Distributing traded goods to consumers requires non-tradables, intensive in local … labour. Because of distributive trade the price elasticity of demand depends on country-specific shocks to productivity and …
Persistent link: https://www.econbiz.de/10005124101
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 endogenous because firms choose the currency in which...
Persistent link: https://www.econbiz.de/10005124428
on the optimal pricing strategies of firms. We consider a model where foreign exporting firms sell intermediate goods to … that they prefer to price in domestic currency, while exporting firms tend to price in the exporter's currency. In that …
Persistent link: https://www.econbiz.de/10005498013
responses. This paper examines exchange rate passthrough to the monthly import price index in South Africa during 1980-2009. A … structural model, yet without neglecting the long-run relationships between prices or the effects of previous import price …
Persistent link: https://www.econbiz.de/10008784768
US firms face in these markets is strongly driven by the prices of Chinese imports, and so is their pricing decision … up to 519 manufacturing sectors, import price changes of Chinese goods pass into US producer prices at an average rate of … 0.7, while import price changes that can be traced back to exchange rate movements of other trade partners only have …
Persistent link: https://www.econbiz.de/10011145441
price flexibility in fostering relative price adjustment. This view has been recently criticized on the ground that, to the …
Persistent link: https://www.econbiz.de/10005114386
This paper provides an introduction to the recent literature on macroeconomic stabilization in closed and open economies. We present a stylized theoretical framework, and illustrate its main properties with the help of an intuitive graphical apparatus. Among the issues we discuss: optimal...
Persistent link: https://www.econbiz.de/10005114457