We examine exchange rate pass-through (ERPT) into aggregate import prices for nine OECD countries in view of Taylor's [Taylor, J., (2000). Low Inflation, Pass-through, and the Pricing Power of Firms, European Economic Review 44 (7), 1389–1408] suggestion that the degree of pass-through is...

In this paper we build an open economy extension of the Gordon (1962) valuation model that suggests a simple forecasting system for three macroeconomic variables; the real growth, inflation and real exchange rate. All the forecasting equations in our system utilize current financial market...