Edwards, Sebastian; Cabezas, Luis - National Bureau of Economic Research - 2021
We use detailed data for Iceland to examine two often-neglected aspects of the "exchange rate pass-through" problem … price indexes in Iceland for 2003-2019, a period that includes Iceland's banking and currency crisis of 2008. We find that … the pass-through declined around the time Iceland reformed its "flexible inflation targeting," and that the coefficients …